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Lemley Yarling Management Co
309 W Johnson Street
Apt 544
Madison, WI 53703
Bud: 312-925-5248       Kathy: 630-323-8422

Washingtonís Birthday February 22, 2013

Model Portfolio Value As of 22 February 2013

$ 676,766

Comment on Model Portfolio activity

Just watching.


February 15, 2013

Model Portfolio Value As of 15 February 2013

$ 681,446

Comment on Model Portfolio activity

We added Coach to large accounts. This week markets held and moved grudgingly higher.

Warren Buffet bought Heinz at 20 times earnings. Wonder why he didnít buy it at ten times earnings in 2009.

Europe was lower this week as austerity has not led to higher GDP. Hey kids, Keynes is right but the Know Nothings * donít want to hear it.

European markets are broadly lower following the release of disappointing GDP reports across the continent. Looking at individual reports:

Germany's preliminary fourth quarter GDP reading came in at -0.6%, worse than the -0.5% expected by the market. Meanwhile, the full-year 2012 reading pointed to growth of 0.7%.

In France, preliminary fourth quarter GDP was reported at -0.3%, worse than the downtick of 0.2% expected by the general consensus. Additionally, the country's nonfarm payrolls declined 0.2% quarter-over-quarter, in-line with expectations.

Italy's fourth quarter GDP contracted 0.9% while the market expected a decline of 0.6%.

Greek GDP dropped 6.0% during the fourth quarter. Meanwhile, unemployment climbed to 27%.

The weak regional GDP readings resulted in a fourth quarter Eurozone GDP contraction of 0.6%. This was worse than the decline of 0.4% expected by the general consensus.

Also of note, Spanish industrial new orders dropped 3.1% year-over-year while a decline of 1.0% was expected.

General Motors made money in North America and Asia and lost a bundle in Europe as it nearly doubled last year's fourth-quarter net profit. For the full year, GM earned $4.9 billion, or $2.92 per share. That was down from $7.6 billion, or $4.58 per share, in 2011. The difference was largely due to one-time items. Excluding those, GM made $2.60 per share last year. Revenue for the year rose 1 percent to $152.3 billion. The 2012 earnings also fell short of Wall Street expectations. Analysts predicted $3.23 per share on revenue of $151.1 billion. Ö..

GM also announced that its union workers would each get $6,750 in profit-sharing checks next month because of the strong performance in North America. In 2011, the company and the United Auto Workers agreed to profit-sharing instead of pay raises. Last year UAW workers got checks for $7,000.

*The Know Nothing was a political movement by the nativist American political faction of the 1850s, characterized by political xenophobia, anti-Catholic sentiment, (now anti-Latino/Islam) and occasional bouts of violence against the groups the nativists targeted. It was empowered by popular fears that the country was being overwhelmed by German and Irish Catholic immigrants, who were often regarded as hostile to republican values and controlled by the Pope (Pius IX) in Rome. Mainly active from 1854 to 1856, it strove to curb immigration and naturalization, though its efforts met with little success. Membership was limited to Protestant males of British American lineage. There were few prominent leaders, and the largely middle-class and entirely Protestant membership fragmented over the issue of slavery.

Nativists had become active in politics in New York in 1843 as the American Republican Party. It spread to nearby states as the Native American Party (which appealed to native-born white citizens) and won a few thousand votes in 1844. Historian Tyler Anbinder warns, however, that the "Native American" party should not be confused with the Know-Nothings because the two different groups ran separate tickets in the same elections in the 1850s.[1]

In the early 1850s numerous anti-Catholic secret orders grew up, of which the "Order of United Americans"[2] and the Order of the Star Spangled Banner came to be the most important. They merged in New York in the early 1850s as a secret order that quickly spread across the North, reaching Protestants, especially those who were lower middle class or skilled workmen. Outsiders called them "Know-Nothings" and the name stuck. In 1855 the Know-Nothings first entered politics under the American Party label.[3] The origin of the "Know Nothing" term was in the semi-secret organization of the party. When a member was asked about its activities, he was supposed to reply, "I know nothing".[4]



February 8, 2013

Model Portfolio Value As of 8 February 2013

$ 683,172

Comment on Model Portfolio activity

We sold Apple for a small profit. We also reduced position in Intel, and Cisco and added Aťropostale and Huntington Banks.† We remain 30% invested. Investors Intelligence has Bulls at 54%, the highest since least year at this time and Bears at 24% the lowest since last May. With the Sequester Show on the horizon we donít know whether this is a case of the media crying Wolf or much ado about nothing.

We are watching.

February 1, 2013

Model Portfolio Value As of 1 February 2013

$ 683,526

Comment on Model Portfolio activity

We added Dow, Intel, Cisco and Merck this week. All yield close to 4% and we have been trading Intel and Cisco for the past three years. They didnít pull back much but we want some exposure as the markets test the all-time highs. We bought Dow and Merck when they pulled back on disappointing earnings. We also repurchased Alcoa and Nvdia and added Joseph A Bank Clothiers to some larger accounts when it plunged 20% on disappointing fourth quarter news. We are about 40% invested in the Model and more than in smaller accounts /less than in larger accounts.

We also made a losing traded in Research in Motion which only serves to remind that we are not immune to making boneheaded decisions.

There may be a swoosh move higher on a piercing of the high. Our time frame for a pullback has been extended and we want to own some quality issues for trading potential sacrificing big gains for peace of mind.























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309 W Johnson Street Apt 544, Madison, Wi 53703 312-925-5248
The factual statements herein have been taken from sources we believe to be reliable but such statements are made without any representation as to accuracy or completeness or otherwise. From time to time the Lemley Letter, or one or more of its officers or employees, may buy and sell as agent the securities referred to herein or options relating thereto, and may have a long or short position in such securities or options. This report should not be construed as a solicitation or offer of the purchase or sale of securities. Prices shown are approximate. Past performance is no indication of future performance.