Dividend.com: ITT Still Has It

Legg Mason: We're Right and the Market's Wrong

Asset manager Legg Mason(LM Quote) just reported its second-quarter earnings numbers, which showed a revenue drop of 13%. The company revealed that assets under management fell 7%, from $992.4 billion last year to $922.8 billion as of June 30.

The company has struggled with underperforming funds, which have some of its investors frustrated and looking elsewhere for better performance. Legg Mason CEO Mark Fetting then made a baffling statement, saying "... we believe that when the credit crisis abates, and as the broader markets turn toward a renewed focus on fundamentals, this will bode well for our underperforming managers."

In other words, the market is wrong and their managers have it right. One thing investors should always remember is that the market tape is the final arbiter of who is right and wrong.

Legg Mason shares are down 50% year to date, and the company has a dividend yield of 2.51% (based on last night's closing price of $38.21). We actually think the company presents some interesting value at these levels, but we would like to see the shares sustain above recent lows for a bit before we get on board.

Eastman Chemical's Cautious Guidance an Opportunity to Buy

Eastman Chemical(EMN Quote) delivered a second-quarter report that was essentially in line with what Wall Street analysts had been expecting. The company sees the next quarter as being flat compared to last year's numbers.

Management is citing a slow U.S. economy and rising raw material and energy costs as contributors to the cautious tone of their earnings report. Eastman stock is taking a big hit so far today, down about 7% at the time of this article's publishing.