The following two-part article puts forth ten stock ideas that I believe would be better off in your investment portfolio than one comprised primarily of Certificates of Deposits (CDs) or bonds, or even government treasuries. This is not to say that CD's do not have value or offer some level of security, but they are long term losers.

A basket of high yielding-high quality stocks can offer a higher return, better tax advantages, and the potential of significant appreciation for those with a long time horizon. Five year CD earning 4%, or a utility stock? I pick the utility every time.

My wife sent me the following quote from Ambrose Redman that I thought would be worth sharing with readers: "Courage is not the absence of fear but rather the judgment that something else is more important than one's fear."

It seems that might be extended to one's view on investing as well. What is really important, the short term or the long term, growth or value, the promise of riches or the hope for stability? In each case I would favor the latter over the former and this brings to mind one of my pal Warren's lessons: Do not buy a stock unless you would be happy to own it even if the market was closed for ten years.

Berkshire Hathaway (NYSE: BRK.A and BRK.B) is certainly a candidate. Take a look at last week's Chasing Value: Considering Berkshire Hathaway... again. However, it does not pay a dividend. The following five quality stocks do:

General Electric (NYSE: GE) - Many investors have been griping that GE has not done very well in the last ten years, and in fact, if you would have bought in at the high you would have been under water for most of that time. However this triple A rated company is worth a look anyway. At Friday's closing price of $29.12 and paying a 4.3% yield you would be buying a great balance sheet with great products and services near the stock's ten-year low. This one is ready to rock for the next ten years. Serious Money: Has General Electric (GE) hit bottom?

Huaneng Power Intl ADS (NYSE: HNP) - Chinese stocks are down 50% or more and HNP is no exception, but at Friday's closing price of $28.36, paying a 6% yield I think the the largest power company in China is a steal. Chasing Value: Huaneng Power odds & ends

JPMorgan Chase (NYSE: JPM) - A shrewdly managed establishment in very treacherous times indeed. I wrote JPMorgan's $10 offer for Bear still too cheap! because I think it played white knight at the government's request when it was really the fox guarding the hen house. While it looks like it took on risk, I think it will turn out in the foreseeable future JPMorgan made a fortune from Bear's repriced assets. At Friday's closing price of $37.67, paying a 4.4% yield and down with the rest of the financial sector the fear factor may be overdone.

Merck and Co. (NYSE: MRK) - This superbly managed company has survived several years of legal expenses and bad publicity while maintaining great cash flow and a strong balance sheet. It has a decent pipeline of products as well. At Friday's closing price of $35.27, it was paying a 4.3% yield and in a very tough market. See why I think Merck is holding up just fine

Keep reading: In my next post I list five more stocks that I think make better investments than CDs right now.

I do not think my picks for the next decade will surprise the shrewder investors among my regular readers. They have already read similar posts like Serious Money: How safe were BRK, BUD, PG, SO, & UPS? and one of my most important ever from last November Serious Money: Electric utilities are the place to be. Readers who heeded that advice are laughing at the market and all the prognosticators since.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of GE, HNP, JPM & MRK. I may own DEO soon.

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This post is part of a series on celebrity spokespeople who ended up doing serious harm to the brands they were hired to promote, or vice versa. See how we rank the 20 top spokesperson fiascos.

In the mid-eighties, a couple of years before I began to drink legally, wine coolers became the alcoholic beverage of choice. Sweet and mildly alcoholic, they came in a variety of fruit flavors and neatly halved the distance between mixed drinks and a Shirley Temple. The combination of cheap wine, carbonated water, fruit juice, and sugar actually packed a pretty decent kick, particularly given that the sweetness almost completely obscured the taste of the alcohol.

One of the toughest problems with wine coolers was selling them to an adult audience. While precocious youngsters were quick to appreciate the Lolita-esque appeal of a super-sweet alcoholic version of Kool-Aid, this image was far from attractive to most of the people who actually bought alcohol. To combat the soda pop overtones of the product, Ernest and Julio Gallo used a version of conservative, home-town sincerity to push their "Bartles and Jaymes" brand. Beginning in 1984, they ran a series of ads featuring two men in hats and suspenders -- "Frank Bartles" and "Ed Jaymes" -- talking in halting sentences about their fine products. The commercials took off and Bartles and Jaymes became an industry leader.

Seagram's (Diageo plc, NYSE:DEO), desperate to up the sales of its flagging brand, hired Bruce Willis in 1986. Popular as "David Addison" on Moonlighting, Willis brought a fun, wisecracking sensibility to the ads, which borrowed heavily from the Bartles and Jaymes brand, often featuring a group of friends sitting around a porch, jamming about the glories of Seagram's Golden Wine coolers. The commercials were exceedingly popular, spawning Willis' short-lived singing career and vaulting Segrams from fifth-ranked to top-ranked brand within two years.

Read the entire series

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Constellation Brands (NYSE: STZ) produces and markets more than 250 brands of wine, spirits and beer, in about 150 countries. The Wines division, the largest maker of wine by volume in the world, is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Tsingtao, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.

The company pleased investors earlier in the week, when it reported fiscal Q1 EPS of 34 cents and revenues of $931.8 million. Analysts had been looking for 31 cents and $906.1 million. The highlight of the quarter was a 24% year over year rise in branded wine net sales. Management also guided FY09 EPS to $1.68-$1.76, versus consensus of $1.70.

STZ shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", eight "holds" and one "underperform". The STZ P/E ratio (11.29), PEG ratio (1.00), Price to Sales ratio (1.15), Price to Book ratio (1.55), Price to Cash Flow ratio (12.05) and Price to Free Cash Flow ratio (11.49) compare favorably with industry, sector and S&P 500 averages. Institutions own about 85% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $17.21 and $26.46. A stop-loss of $18.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Dream Retirement Home Bargain Cities
The housing downturn's upside? You don't have to go overseas anymore for your dream retirement home. Here are the six best markets for deals. They include Miami, Las Vegas, Phoenix, San Diego, Tampa and Denver.
6 real estate bargains - FORTUNE
Also: Housing Prices Will Get Worst in Hard Hit Cities

'Please, I Need Money. Can You Help Me?'
In these tough times, friends may need financial assistance. When should you say yes and when should you walk away?
What to do when you're asked for financial help - Bankrate.com

One Family: In Search of a Simpler Life
Five years ago, Kathy & Josh Gunns ditched the corporate world for the family farm. They love their new life, but did it simplify their finances? Not by a long shot.
One family: In search of a simpler life - Money Magazine

World's Most Powerful Tween Stars
These tween stars earned the most money - and the most buzz - over the last year. Topping the list is 'Hannah Montana' herself Miley Cyrus followed by 'Harry Potter' Daniel Radcliffe, the Jonas Brothers, Zac Efron and Ashley Tisdale.
The World's Most Powerful Tween Stars - Forbes.com

World's Most Powerful Actors
According to Forbes' Johnny Depp is the most powerful actor in the world today. He tops Brad Pitt, Will Smith, Jerry Seinfeld and Bruce Willis.
In Pictures: The World's Most Powerful Actors - Forbes.com

World's Most Powerful Actresses
According to Forbes' Angelina Joie is the most powerful actress in the world today. She tops Cameron Diaz, Jennifer Aniston, Keira Knightly and Jennifer Lopez.
In Pictures: The World's Most Powerful Actresses - Forbes.com

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Brown-Forman Corporation (NYSE: BF.B) is engaged in the manufacture, bottling and marketing of alcoholic beverages. It provides whiskies, bourbons, wines, tequila, liqueurs, vodka, rum, gin and ready-to-drink products, under a variety of well-known brand names. Spirit products include Jack Daniel's, Canadian Mist, Early Times and Southern Comfort. Wine labels include Bolla, Fetzer, Bel Arbor and Five Rivers. The company's beverages are sold in more than 130 countries. Diageo (NYSE: DEO) and Constellation Brands (NYSE: STZ) are major competitors.

The firm pleased investors last week, when it reported Q4 EPS of 81 cents and revenues of $772.3 million. Analysts had been looking for 69 cents and $751.2 million. Management also guided FY09 EPS to $3.73-$3.98 ($3.84 consensus). The outlook incorporated expectations for continued international growth and anticipated increases in fuel and raw material costs.

BF.B shares popped on the news and have since been defining a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy", two "buys", two "holds" and three "underperforms". The BF.B EPS Growth rate (22.73%), Operating Margin (20.87%), Net Profit Margin (13.39%), Return on Assets (12.63%), Return on Investment (19.00%) and Return on Equity (26.65%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $61.35 and $79.88. A stop-loss of $66.40 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.

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• O'Reilly Automotive (NASDAQ: ORLY) is an auto parts retailer that is facing weak demand as a result of soaring crude oil prices. However, analysts believe the company's strategy to buy CSK Auto will bring a lot of national success. ORLY is expected to show earnings of $1.76 per share this year and $2.02 next year.
• Stanley Works (NYSE: SWK), headquartered in New Britain, Conn., has the advantage of being one of only two companies offering a complete line of hand tools for consumers. The company focuses its performance on both its industrial tool division and a security business. Analysts forecast a profit of $4.18 this year, and $4.63 a share for next year.

• Diageo (NYSE: DEO) is a spirits maker that benefits from strong sales in Latin America and Asia. Analysts expects to see an annual earnings increase of about 10% for the company's sales.
• Dick's Sporting Goods (NYSE: DKS) disappointed analysts when it recently reported its same-store sales. Taking into account the current weak market conditions, the retailer also warned earnings would likely come in between $1.22 and $1.36 a share for the year ending January '09, compared with its previous forecast of $1.49 to $1.54 a share. However, the company is still considered as one of the best-managed retailer, and analysts estimate a significant earnings growth rate over the next five years.
• Best Buy (NYSE: BBY) is enjoying good times even amid tough market conditions that has other retailers worry that consumers may continue to cut back on their spending. The company is maintaining its dominance in the market by launching new products and services that capture people's attention such as Geek Squad or Best Buy Mobile.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bob Evans Farms Inc. (NASDAQ: BOBE) posted stronger-than-expected Q4 earnings.
• Ciena Corp. (NASDAQ: CIEN) beat earnings expectations, but share prices slipped anyway.
• Daktronics Inc. (NASDAQ: DAKT) Q4 results beat expectations and it raised its revenue outlook.
• Diageo (NYSE: DEO) is recession-proof and should deliver solid results, predicts one adviser.
• Donaldson Company Inc. (NYSE: DCI) beat Q3 expectations and raised its full-year guidance.
• Ensco International Inc. (NYSE: ESV) was upgraded because of its earnings growth potential.
• Lehman Brothers Holdings Inc. (NYSE: LEH) earnings prospects don't impress Jim Cramer.
• Netezza Corp. (NYSE: NZ) beat Q1 expectations and offered full-year revenue guidance.
• Potash Corp. (NYSE: POT) earnings are "set to soar" says one analyst, due to rising demand and prices.
• Sherwin-Williams Co. (NYSE: SHW) lowered its Q2 and full-year forecasts, sending shares down.
• Take-Two Interactive Software Inc. (NASDAQ: TTWO) beat Q2 estimates on Grand Theft Auto IV demand.
• Trina Solar Ltd. (NYSE: TSL) beat Q1 estimates but shares fell on the disappointing Q2 outlook.
• Wal-Mart Stores Inc. (NYSE: WMT) was upgraded due to its earnings outlook and increased productivity.

See also: Earnings highlights: Toll Bros., National Semiconductor, Dr Pepper, Guess and others

Also, continued real estate losses are expected to hurt the quarterly reports of banks such as like Wachovia (NYSE: WB), Wells Fargo (NYSE: WFC), and National City (NYSE: NCC). And Steven Mallas wonders why Playboy (NYSE: PLA) shares have tanked since its last earnings report.

Upcoming results to watch for include Krispy Kreme (NYSE: KKD), Pall Corp. (NYSE: PLL), Pep Boys (NYSE: PBY), Korn Ferry (NYSE: KFY), and Casey's General Stores (NASDAQ: CASY).

Visit AOL Money & Finance for more earnings coverage.

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The Boston Beer Company (NYSE: SAM) is America's largest microbrewer, producing more than twenty seasonal and year-round varieties of Samuel Adams brand craft-brewed beers at facilities in Cincinnati and Boston. The company moved to boost its capacity last summer, with the purchase of a Pennsylvania brewery from Diageo (NYSE: DEO). The new facility is expected to begin producing Samuel Adams beers in the third or fourth quarter of 2008. The company also makes and distributes Twisted Tea brand malt beverages and HardCore brand ciders. Products are distributed to retailers in the US, Canada, the Caribbean, Europe and the Pacific Rim. Anheuser-Busch (NYSE: BUD) is a major competitor.

The firm pleased investors last week, when it reported Q4 EPS of 46 cents and revenues of $92.2 million. Analysts had been looking for 35 cents and $88.9 million. Management also guided FY08 EPS to $1.70-$2.00, versus Street consensus of ($1.68).

The stock popped into a bullish "pennant" consolidation pattern on the news. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy", one "buy" and three "holds". Analysts see an 18% growth rate, through the next year. The SAM Price to Sales ratio (1.89), Price to Free Cash Flow ratio (22.92), Sales Growth rate (25.70%), EPS Growth rate (170.59%), Return on Assets (12.84%) and Return on Investment (17.89%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 53% of the outstanding shares. Over the past 52 weeks, the stock has traded between $31.00 and $55.30. A stop-loss of $39.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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The currency of our realm, the US Dollar, has been losing value for many years, but lately the results of this sad state of affairs have become increasingly more evident. Concerns are mounting on a global basis not just in the United States. The euro, once pegged at a buck, is now trading at $1.55, while gold has passed $1,000 and oil has continued its charge, breaking through the $110 per barrel mark.

While a good deal of this problem is home grown, the pain is being felt all around the world. We have read many stories about how the American economy is a smaller part of the global economy and becoming somewhat detached. This is nonsense. What has happened is that the global economy has become infinitely more integrated and like any integrated structure (the architect speaking), what occurs in one place is felt everywhere.

The Federal Reserve Board, led by Chairman Ben Bernanke, has been watching the economy in an extremely measured fashion, bordering on casual. To those who see beyond Bernanke's calm demeanor, one should imagine a stock trader of old, holding the ticker tape up to his eyes and monitoring every change, every blip in the market as the ticker tape machine clicks away, spewing out the latest market activity.

Last Friday the market tanked capping off a bad week and prompting me to post Dow below 12,000 -- do I hear 11,000? Yes I do!. Then, Monday, it tanked again. The Fed had seen enough and juiced up the market on Tuesday by providing a burst of liquidity in the form of $200 billion in credit swaps so that financial institutions would have more capital to lend. This was like taking a hit on a super caffeinated energy drink -- Wall Street got all excited for a day and the market jumped: Dow up +416: The Fed is not dead.

The Fed's action was fun for a day, but by Wednesday, traders were already whining 'what have you done for me lately' and when the sugar and caffeine had burned off, the market fizzled out quickly like some cheap fire works.

We all view the world from our own vantage point and have a hard time seeing the perspective of others, but they feel the pain also, becasue when the dollar goes down in value, it hurts our buying power. And what about the Chinese who are holding over a trillion dollars in US Treasury notes?

Then there are the European farmers and manufacturers crying foul because the relative cost of their goods on the open market has escalated. What about the pain of many of our dollar pegged neighbors, like Costa Rica, whose citizens were already far behind us on the economic curve, and now they also have to deal in dollars that have lost so much value. Oil , too, has gone up in price not just because OPEC won't increase production, but because they are "petro dollars" and correlate to our currency.

Every time our federal government prints more money (or issues digital currency) to cover the federal deficit, trade deficit, Iraq war, which is only off-budget in the imaginations of our government officials (elected and not), lowers interest rates (making Treasury notes less desirable) issues credit swaps or sneezes, the US, AND the Global economy STILL catches a cold! Right now, some are concerned it might be more than a cold -- the world economy might have caught pneumonia.

All of these popular companies must continue to operate under these sickly economic conditions. There is no day off, no place to hide, no running from the competition for Apple Inc. (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), Anglo Amer ADR (NASDAQ: AAUK), Bunge Ltd. (NYSE: BG), Diageo plc (NYSE: DEO), eBay (NASDAQ: EBAY), General Electric (NYSE: GE), Google Inc. (NASDAQ: GOOG), Goldman Sachs (NYSE: GS), Microsoft Inc. (NASDAQ: MSFT), Raytheon Company (NYSE: RTN), Reliance Steel and Aluminum (NYSE: RS), Tiffany and Co (NYSE: TIF) and Under Armour'A' (NYSE: UA).

The only way to reduce inflation is to have a balance between the amount of currency in circulation and the goods and services available to purchase with said currency. Every action by the Fed to create liquidity in the economy, generates a phantom value, and if not met with an increase in productivity, is devaluing the dollar and enslaving us to a future of working more for less benefit. That is why I so strongly believe we should fund roads & bridges NOT mad money stimulus. For more discussion you can also read Serious Money: Stimulate productivity not consumption, which I believe is an imperative. That is the gravity of the situation.

In Part Two, I will expand further on these topics and delve into how there actually were and are weapons of mass destruction right under our noses -- economic weapons of mass destruction.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I currently own shares in AAUK, EBAY and TIF.

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Earlier in the week I posted about finding the market bottom using that age-old handheld calculator, a white paper napkin. So, unfortunately it looks like I may be right again. Not exactly something I was hoping for, but if it has to be, it has to be. I wonder if my old napkin can outperform Wall Street super computers?

Is this an auction to the bottom? Are investors bidding things down instead of up? Looks like it from all the negative sentiment. Consumer sentiment is down, and short sellers are all excited, increasing their negative positions to new highs every day.

And here is the all-telling sign of capitulation: the ever-lying overly optimistic government is starting to admit how bad things are and throwing hundreds of billions of dollars at the problem. When does the turnaround come?

That's easy: when President Bush reverses his position from last week and states that yes, we may be in recession; followed by the least experienced investors stomachs churning while they bail out totally.

So let's look on the good side. This means all you true value investors should have your watch lists in hand as "my pal Warren" and I do (and Dan and Greg and Mr. Noital) because the bargains are going to come fast and furious as we approach the Dow at 11,000. Let's also not forget about stimulating production, as I've already written about in Serious Money.

Oh, by the way, this morning's short-lived uptick was just a few bottom fishers getting excited...but there is more to come.

A few things from my watch list:

• Anadarko Petroleum (NYSE: APC)
• Anglo Amer ADR (NASDAQ: AAUK)
• Bunge Ltd. (NYSE: BG)
• Diageo plc (NYSE: DEO)
• General Electric (NYSE: GE)
• Intuitive Surgical Inc (NASDAQ: ISRG)
• Raytheon Company (NYSE: RTN)
• Reliance Steel and Aluminum (NYSE: RS)
• Tiffany and Co (NYSE: TIF)
• Under Armour'A' (NYSE: UA)
• Valero Energy (NYSE: VLO)
• Wells Fargo (NYSE: WFC)

Many of these are already bargains, but they will go lower. There are many more quality companies out there, and the lower the market drops, the easier it is to find them. Surprising as it may seem, when the market gets oversold, almost everything is a bargain. That being the case, load up on companies that pay dividends with quality products, good cash flow, low debt and of course...quality management.

Final Update: the DJIA closed at 11,893.69 -146.70 (-1.22%)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I currently own shares in APC, AAUK, ISRG, MRK, and VLO.

...and for a special treat: Ode to TECH-bubbles: YouTube at its best!

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MOST NOTEWORTHY:

• HSBC downgraded Novartis (NYSE: NVS) to Underweight from Neutral, as they believe the company's mid-single digit pharma sales growth is not sustainable.
  
• AIG (NYSE: AIG) was downgraded to Market Perform from Outperform by Keefe Bruyette due to their concerns about the company's deteriorating profit trends.
  
• Diageo (NYSE: DEO) was lowered to Neutral from Buy by Goldman Sachs to reflect a lack of near-term catalysts.
  
• Deutsche Bank downgraded BEA Systems (NASDAQ: BEAS) to Hold from Buy, as they believe it is likely that the acquisition will close in April.

• Live Nation (NYSE: LYV) was dropped to Hold from Buy by Morgan Joseph.
• Jackson Hewitt (NYSE: JTX) was dropped to Neutral from Buy at FTN Midwest.
• Roth Capital downgraded Collagenex (NASDAQ: CGPI) to Hold from Buy.
• Credit Suisse lowered MFA Mortgage (NYSE: MFA) to Neutral from Outperform.

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• Top 10 Stocks With Big Insider Buying, Buybacks
• This Shipping Stock Rides the Ag Boom

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MOST NOTEWORTHY:

• Jefferies upgraded shares of RadiSys (NASDAQ: RSYS) to Buy from Hold following the Q3 upside to reflect the large ramp of new business expected in 2008.
  
• Lehman raised its rating on Diageo plc (NYSE: DEO) to Equal Weight from Underweight and has increased confidence that the group can increase margins.
  
• CIBC upgraded shares of Vitesse (NASDAQ: VTSS) to Sector Performer from Sector Underperformer following the company's business update, as they believe progress is being made on numerous fronts.
  
• Nollenberger upgraded shares of Big 5 Sporting Goods (NASDAQ: BGFV) to Buy from Neutral following the better-than-expected Q3 results and improved full-year outlook, as they believe visibility has improved significantly.
  
• Citigroup upgraded Coca-Cola Enterprises (NYSE: CCE) to Buy from Hold on valuation as they believe the stock is undervalued given Glaceau's expansion to European markets. The broker recommends taking profits in Pepsi Bottling Group (NYSE: PBG) and swapping into CCE.

• Baird upgraded Modine Manufacturing (NYSE: MOD) and Accuride (NYSE: ACW) to Neutral from Underperform.
  
• Deutsche Bank upgraded Energizer (NYSE: ENR) to buy from Hold.
  
• Goldman added Celanese (NYSE: CE) to its Conviction Buy List.

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Most mergers are driven by the notion, sometimes wildly mistaken, that the combination will bring both a competitive advantage. Some pairs of companies, however, seem so intuitively right for one another, no bottom-line considerations should be allowed to interfere with their matrimony. Like an empty rental and a copper thief, these two seem drawn together

The leader in the mortgage meltdown, Countrywide Financial (NYSE: CFC) managed to leverage its bon-homey, don't-ask-don't-tell lending policies into a corporate disaster. Where, you might ask, can it turn to make lemonade out of these lemons?

To answer this I asked myself, what do people do when the mortgage bill is greater than the sum of their paychecks, savings, hockable goods and child's piggy bank? Usually, when the going gets tough, the tough go drinking. Who, then, would be a better partner for Countrywide than distilling giant Diageo plc (NYSE: DEO)?

The newly dispossessed won't be drinking alone, either. With the CEO selling off his holdings, the SEC reviewing the company's stock option awards, and massive layoffs through the industry, millions of us with a piece of the mortgage business could use a stiff shot of J&B with a Guinness chaser.

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Yesterday's WSJ's "Heard On The Street" column (subscription required) has published examples of recession-resistant stocks, in order to better-prepare individual investors for a potential additional downturn in the U.S. economy.

We took it a step further. What follows is a more panoramic view of each stock, including chart analysis.

AT&T (NYSE: T): the telecom giant has become a growth company. T's chart is healthy with the stock recently broken out to $42.50.

Citigroup (NYSE: C): The diversified retail/investment banking giant still must do more to cut costs. Technically, C may have formed a bottom, but investors should consider waiting until C trades continually above $48 - above its 50-day moving average - before purchasing shares.

Diageo (NYSE: DEO), A well-positioned distiller/beverage company, DEO's chart is solid, but investors should consider waiting for DEO to clear resistance at $88 before purchasing shares.

Genentech (NYSE: DNA): Analysts project solid earnings growth for DNA, and the stock appears to have bottomed around $71 about a month ago.

Hess Corp. (NYSE: HES) Has kept costs under control while benefiting from oil's elevated price and the barely-adequate refinery infrastructure in the U.S. HES's chart is solid with the stock hitting a high for 2007 above $69 in the last few weeks.

Lockheed Martin (NYSE: LMT) Will continue to benefit from large U.S. Department of Defense contract work. Meanwhile, LMT's chart recently broke out of $93-$98 trading range, trading once again above $100.

Microsoft Corp. (NASDAQ: MSFT) Has the products and resources to weather any potential recession storm, but its stock has traded in a $27- $32 for about 9-months; MSFT currently trades in the middle of that range, hence investors should take note of any prolonged failure to move and stay above $32 in the months ahead.

Sempra Energy (NYSE: SRE), a utilities play currently trading around $58.70, SRE's stock corrected with the market this summer but has recently cleared its 50-day moving average.

Sigma-Aldrich Corp. (NASDAQ: SIAL), a solid chemical manufacturing play, investors should let SIAL clear resistance at $50 before considering a share purchase.

Walgreen (NYSE: WAG), drug stores usually perform adequately during downturns but investors should consider waiting until the stock clears resistance at $48 before purchasing shares.

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"In the current volatile market, you can't go wrong by making your portfolio more defensive," says Glenn Rogers, who notes he has been "on the hunt for stocks that are fairly bulletproof."

One such stock, according to the analyst with Internet Wealth Builder, is Diageo PLC (NYSE: DEO). He says, ""London-based Diageo is the largest international manufacturer and distributor in the beverage alcohol industry, which is virtually recession-proof."

Many of its brands, he notes, will be immediately recognizable: Smirnoff, Guinness, Johnnie Walker, Captain Morgan, Jose Cuervo, Bushmills, J&B Scotch, and our own Crown Royal. In fact, he observes, 17 of the company's brands are among the top 100 premium spirit brands in the world.

Rogers explains, "Its strategy is to drive organic growth by taking leadership positions in every category in which it competes. The company also looks to exploit opportunities for growth in such key emerging markets as China, India, Russia, and Brazil."

He states, "All and all, this looks like a safe place to ride out any storm. However, the stock is not cheap. The ADRs trade just below its high. Buy with a target of $95."

Next up, he says, is Dentsply (NASDAQ: XRAY), whose origins go back to a family of London silversmiths in 1820. Today, he notes, it is the largest professional dental products supplier in the world.

Roger quips, "So if you drink too many Diageo products with sugar-filled mixers you can benefit from having your teeth looked after using this company's products."

The company, he points out, reported strong second-quarter results and has raised guidance for the rest of the year. Net sales rose 7.4%, to $507.4 million, driven by strong international growth. Net income for the quarter was $65.4 million, up 13.5% from last year.

The advisor concludes, "The business carries little debt and has a strong record of generating free cash flow so its modest dividend payout of 4 cents a share quarterly should increase going forward." He recommends purchase with a target of $50.

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.

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MAJOR PAPERS

• According to people familiar with the matter, Home Depot Inc (NYSE: HD) was close to accepting about $1.2B less for the sale of its wholesale distribution business to three private-equity firms, but there was uncertainty about whether the deal would close by last night's deadline, reported the Wall Street Journal (subscription required).
• Ford Motor Company (NYSE: F) CEO Alan Mulally urged the Federal Reserve to stimulate the economy and focus on economic growth, reported the Financial Times (subscription required).

• British energy company BP plc (NYSE: BP) is warning that a fierce environmental campaign may force it to scrap a $3.8B expansion at one of America's biggest oil refineries, reported the U.K. Times.
• From BusinessWeek's "Inside Wall Street" column:
  
• Spirits company Diageo plc (NYSE: DEO) may be the perfect tonic for jittery markets, and could appreciate 20% to 25% annually for several years, said Randy Haase of Baron Fifth Avenue Growth Fund.
  
• As household budgets get squeezed, consumers are likely to spend more at discount retailers - and TJX Companies Inc (NYSE: TJX), owner of T.J . Maxx, is one of the best bets.
• In September, Arena Pharmaceuticals Inc (NASDAQ: ARNA) will announce 6-month safety review for its lead drug, lorcaserin, an obesity drug, which is in a large phase III test.

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Baseball is all about numbers, just like the stock market. Wall Street got all excited when the Dow Jones Industrial Average broke 14,000. Any day now Barry Bonds will be breaking the career home-run record set by Hank Aaron of 755. He only needs three more to reach 756.

Barry Bonds' last few years have been surrounded by controversy, from mistresses to steroids to anti-social behavior, as he has chased his destiny in pursuit of the home-run record. I will not dwell on any of these issues here as they have all been discussed in far greater detail than need be in every form of media.

I just got back from lunch at O'Brien's Pub where the subject came up (how could it not) and I was thinking about how I would end the story in grandeur if I was writing it. More importantly Hank and I (the bartender, not Aaron) were discussing what Bonds could do to create the perfect ending to this story and his career. Then it came to me -- Bonds should hit No. 755, shake hands with the umpire, his teammates and manager, wave to the fans, and simply walk off the field -- The Ultimate Walk-off Home Run.

Leave the field and baseball with the record a tie. If he ended his baseball career in this way he will have crafted one of the top sports stories of all time. Furthermore, Henry Aaron, who is not likely to be present when the record is broken or even shake Bonds' hand, will be honored and the two men will represent baseball together as the joint record holders, side by side in every publication and many Major League Baseball events. Of course, this ending is just a figment of my imagination, it does not seem to be in Barry Bonds' persona to even think of this storybook ending.

And speaking about home runs, Willie, the owner of O'Brien's, was telling me about his nearly completed pub in Shreveport, Louisiana, and his plans to expand to other locations and create a franchise with some branding power. One of the oddities of my life is that I do not drink, yet I find this pub a lunchtime refuge from life's many pressures. I also have been thinking about several relevant companies that deal in alcoholic beverages. One in particular that has been on my watch list for quite some time and may be worth a closer look now is, Diageo plc (NYSE: DEO). It has many intriguing metrics to consider.

Diageo closed today at $84.07, a couple bucks off its 52-week high. It is paying a dividend yield of 2.84%, that is higher than average but sports a P/E of around 14. That is not only lower than the market average but lower than the industry average, according to AOL Money & Finance. While I think the price-to-book is too high, over 6, it has a staggering return-on-equity of 42% and a profit margin of 27%. No one knows when the US or world economy might falter, but DEO should do well either way, the dividend offers some cushion and the branding power should do well in the growing foreign markets. It could be one of those value plays that is also a growth story. So Bonds is up, O'Briens is up and I think Diageo is heading up. Two out of three will probably continue to do so for a long time.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.