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My Watchlist – October 25, 2010

|Includes:AME, AMTD, Caterpillar Inc. (CAT), CHKP, DCI, DHR, GGG, GS, HON, ITT, MATW, MIDD, MMM, PKX, SWK, TTC, UTX

I have reviewed issue 9 of Value Line and added companies that have exceptional returns on equity. I am moving the posting of this list to Monday in order to make it more timely. The list is not perfect and some judgment is required in deciding whether to include a particular stock. As always, I welcome your feedback and comments.

The idea here is to have a dashboard of substantially all the larger-cap high quality businesses in the U.S. in one place that you can review at least weekly to see what Mr. Market is making available to you.

Here is the updated watchlist.

Stocks Added This Week

Caterpillar Inc. (NYSE:CAT)

Donaldson Company, Inc. (NYSE:DCI)

Graco Inc. (NYSE:GGG)

The Middleby Corporation (NASDAQ:MIDD)

Stanley Black & Decker, Inc. (NYSE:SWK)

The Toro Company (NYSE:TTC)

AMETEK, Inc. (NYSE:AME)

Danaher Corporation (NYSE:DHR)

Honeywell International Inc. (NYSE:HON)

ITT Corporation (NYSE:ITT)

3M Company (NYSE:MMM)

United Technologies Corporation (NYSE:UTX)

POSCO (ADR) (NYSE:PKX)

Goldman Sachs Group, Inc. (NYSE:GS)

TD Ameritrade Holding Corp. (NASDAQ:AMTD)

Check Point Software Technologies Ltd. (NASDAQ:CHKP)

Matthews International Corporation (NASDAQ:MATW)

A few thoughts…

Many stocks are close to new highs and are well above their lows. Some caution is in order.

The key to getting the most out of the list is to review it on a regular basis. In time, some obvious opportunities will emerge.

The author of this blog is NOT an investment, trading, legal, or tax advisor, and none of the information available through this blog is intended to provide tax, legal, investment or trading advice. Nothing provided through these posts constitutes a solicitation of the purchase or sale of securities/futures. The data and information presented in this blog entry is believed to be accurate but should not be relied upon by the user for any purpose. Any and all liability for the content or any omissions, including any inaccuracies, errors or misstatements in such data is expressly disclaimed.

Stocks: CAT, DCI, GGG, MIDD, SWK, TTC, AME, DHR, HON, ITT, MMM, UTX, PKX, GS, AMTD, CHKP, MATW