One by one company's are announcing that higher energy prices, rising inflation and higher interest rates are having an impact on their bottom-line.

I can't but help quote one of my favorite TV characters, Gomer Pile; "Well Gollie, would you look at that."

The Wall Street pundits want us to believe that P/E ratios are historically low on forward looking basis, but they don't tell you what happens when P/E multiples become compressed due to higher costs. I'll tell you what happens when P/E ratio's are compressed, the stocks get hit.

We knew the day was coming when inflationary pressures would eventually impact earnings. Stay tuned, earnings for Q3 could get real interesting

Here is a partial list of the stocks I want to buy down the road;

CAKE, PFCB, ERTS, LOW, VAR, SYK, OSI, PHM, DIS, INTC, MSFT, PNRA, NVR, MMM, UPS, DELL, QCOM.