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Nothing is worse than repeating past mistakes. Despite the awful economy, my newest portfolio is doing better than any other since 1999-2000, actually passing a 100% gain recently, although it has dropped back slightly with the market the past few trading days.

Ten years is recent enough for me to remember giving everything back and then some. I'm not doing that again. But what to do? I certainly do not like sitting with a heavy cash position collecting almost nothing. I have recently discussed this issue, see: Serious Money: ETF that's better than cash.

The solution is to find stocks that have low volatility, high yields, and the recurring revenue and strong cash flow to maintain the yield. Long term investors will not be surprised by my search leading me to AT and T (NYSE: T) and Verizon Communications (NYSE: VZ), the two largest communications companies in the land.

Alltel Wireless, which is in the midst of being acquired by Verizon Wireless (making the carrier the largest in the U.S.), wants to shake up the wireless industry of sorts. How? Require one-year contracts for its new wireless subscribers without raising the subsidized prices of its wireless handsets.

Analyst upgrades:

• Morgan Stanley said Bank of America's (NYSE: BAC) capital needs are largely known and shares are trading "cheaply despite reduced downside risk." The firm upgraded shares to Overweight from Underweight and raised the price target to $25 from $16. Shares were also upgraded to Outperform from Neutral at Baird citing manageable capital needs and attractive risk/reward.
  
• Keefe Bruyette upgraded Fifth Third Bancorp (NASDAQ: FITB) to Outperform from Market Perform on valuation as it views the stock as inexpensive despite the recent rally. The firm has an $8 target on the stock.
• Banc of America/Merrill upgraded Ericsson (NASDAQ: ERIC) to Buy from Neutral as it believes fewer hedging losses could bring upside over the next few quarters.
• Rio Tinto (NYSE: RTP) was raised to Overweight from Neutral at Barclays.
  
• EnerNOC (NASDAQ: ENOC) was lifted to Buy from Neutral at Janney Montgomery.
  
• Westpac Banking (NYSE: WBK) was upgraded to Neutral from Underperform at Credit Suisse.

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

• Baidu Inc. (NASDAQ: BIDU) reported better-than-expected Q1 earnings as revenues surged in the quarter.
• Burger King Holdings Inc. (NYSE: BKC) just beat Q3 expectations despite weak same-store sales growth.
• Corn Products International Inc. (NYSE: CPO) Q1 results were dragged down by higher corn costs.
• Dow Chemical Co. (NYSE: DOW) Q1 earnings sank on falling sales, job cuts and acquisition costs.
• Eastman Kodak Co. (NYSE: EK) reported a deeper-than-expected Q1 loss and suspended its dividend.
• Energizer Holdings Inc. (NYSE: ENR) posted better-than-expected Q2 earnings but revenue declined.

Verizon Wireless, a division of Verizon Communications, Inc. (NYSE: VZ), and Microsoft Corporation (NASDAQ: MSFT) may be partnering soon to take on the Apple, Inc. (NASDAQ: AAPL) iPhone. The iPhone, which has re-defined the mobile handset and has racked up huge sales worldwide in the 22 months in existence, needs a strong competitor. So far, all the iPhone "killers" have been anything but.

Verizon Communications, Inc. (NYSE: VZ) reported Q1 earnings on Monday, and they didn't disappoint. The telecommunication entity said it earned $0.63 per share on an adjusted basis. Okay, the growth wasn't so great. The company earned an adjusted $0.61 per share in the year-ago period. But you know the game: it's all about expectations. So, on that count, Verizon was ahead by four pennies, according to this database.

But the Verizon story isn't just about earnings. It's also about cash flow. Net cash from operations increased 19% to $6.4 billion. Free cash flow more than doubled to $2.7 billion. Verizon is a well-known dividend-paying stock, so shareholders definitely want to see good cash flows.

Analyst upgrades:

• Citigroup upgraded Research in Motion (NASDAQ: RIMM) to Buy from Hold and added the stock to its Top Picks Live List. The firm believes RIMM's outlook is more secure given its unit growth trajectory and stabilizing margins. Citi raised its target on the stock to $100 from $65.
  
• Morgan Stanley upgraded Microsoft (NASDAQ: MSFT) to Overweight from Equal Weight following the company's Q3 results it believes growth is accelerating and expectations are low. The firm raised its target on the stock to $24 from $21.
  
• Deutsche Bank upgraded Huron (NYSE: HURN) to Buy from Hold as it believes bad news is already priced in and FY09 expectations are achievable. The firm keeps a $46 target on the stock.
• Credit Suisse (NYSE: CS) was upgraded to Neutral from Sell at UBS.
  
• Quicksilver (NYSE: KWK) was raised to Buy from Neutral at Banc of America/Merrill.
  
• EIG Resources (NYSE: EOG) was lifted at Goldman to Conviction Buy from Neutral.

TheStreet.com's Jim Cramer says if you don't want to wait for a pullback, look abroad for the next leg or find values at home.

What do you do when everyone knows we have come up too far, too fast; no one knows who is actually buying; and we are going into earnings season?

What do you do when the animal spirits are taking up the market and yet other than a handful companies -- Research In Motion (NASDAQ: RIMM) (Cramer's Take), Xilinx (NASDAQ: XLNX) (Cramer's Take), Corning (NYSE: GLW) (Cramer's Take), Best Buy (NYSE: BBY) (Cramer's Take) and Taiwan Semi (NYSE: TSM) (Cramer's Take) -- almost all companies that have spoken during the "off-season" earnings reports have been dismal?

Right now, over at Hulu.com -- a joint project of News Corp. (NYSE: NWS) and General Electric Company's (NYSE: GE) NBC Universal, viewers can check out recent editions of, for example, The Daily Show or Man Caves, among many other programs normally viewed on cable networks such as Comedy Central or the DIY Network. Viewers need a computer and a high-speed Internet connection to catch these programs, but they don't need a cable subscription (or even a television!).

"The completion of our nation's transition from analog to digital TV in June will allow the analog spectrum to become available for different uses," points out David Sandell.

Here, the contributing editor of Leeb's Income Performance Letter explains why AT&T (NYSE: T) and Verizon (NYSE: VZ) are poised to be the biggest beneficiaries among leading telecoms.

"Customers are increasingly seeking lower-cost services and delaying purchases of more costly equipment. But the companies are adapting, particularly through cost-cutting and strengthening their balance sheets by paying down and restructuring debt.

"AT&T and Verizon, the telecom industry leaders, were the big spenders for rights to the powerful analog signals when the FCC auctioned off much of the freed-up spectrum in early 2008.

Sellers got a win in today after losing six of the last 7 days. The jobless claims were not as bad as expected, and leading indicators were "less-bad" than expected. But we have had close to a 20% rally in the S&P and the DJIA off of lows from the last two weeks. Here are the unofficial closing bell levels:

DJIA
S&P500
NASDAQ

Top Analyst Upgrades
Top Analyst Downgrades

AT&T (NYSE: T) closed at $24.35. T April option implied volatility of 39 is below its 26-week average of 45, according to Track Data, suggesting decreasing price movement.

Verizon (NYSE: VZ) closed at $28.14. VZ April option implied volatility of 38 is below its 26-week average of 46, according to Track Data, suggesting decreasing price movement.

Comcast (NASDAQ: CMCSA) closed at $12.92. April option implied volatility is at 64; July is at 62; near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

TheStreet.com's Jim Cramer identifies the eight Dow components that will become too cheap not to buy.

When I arrived at my worst-case view that the Dow could reach 5320, my first reaction wasn't, "Look out below." It was more like, "Wait a second, how much I would like to buy these stocks at those levels?" Then I started thinking, "What do I do if it gets there and I am not in? Will it stay down there? Is it right to avoid a market that's cut by almost two-thirds in such a short period of time when some companies with really good earnings power might be selling at prices that we might never see again?"

But which ones?

5% Dividends You Can Believe In
Don't let other companies' dividend cuts turn you away from these high-yielders. The list includes Consolidated Edison, Eli Lilly, Genuine Parts, HJ Heinz, Pitney Bowes and Verizon.
http://www.smartmoney.com/Investing/Stocks/5-Percent-Dividend-Yields-You-Can-Believe-In/

It's a market that seems to know no (lower) bounds. The pronounced U.S. recession continues. The financial markets have stabilized but credit -- the lifeblood of commerce -- remains constrained.

Further the nation awaits the U.S. Treasury's stress test for banks, a process that will help determine which banks are suitable to continue operating, and which may not be.