The Daily Dow
Tuesday, June 25, 1996
by Robert Sheard

LEXINGTON, Ky. (June 25): It was another directionless summer day for the market. With earnings season and another Federal Reserve Open Market Committee meeting around the corner, nothing substantial was likely to take place for the broad market. Everyone's worried about what might happen in the next few weeks. I know, I know - a few weeks. Think decades, Fool.

Today's big mover in the Foolish Four was DuPont, heading the wrong direction, I'm afraid. At an analyst meeting today, DuPont's president and CEO, John Krol, said that by 2002, he aims to double DuPont's value. With a market cap of nearly $44 billion, we're looking at a major prediction.

Krol said one of the first steps is an additional $1 billion in fixed cost reductions in 1996-1997. It would be hard to complain with such a plan in terms of shareholder value. Given the stock's 1.6%% drop today, one has to wonder what else Krol said that analysts took less optimistically.

Chevron was the unlucky recipient of a rare honor today. UBS Securities lowered its rating on Chevron from a Hold to a Sell - an almost unheard of rating in these days of euphemism and meaningless analyst-speak. You have to admire UBS analyst Mark Gilman for having the moxie to issue an actual Sell rating, even if it is on our darling Foolish Four holding.

Gilman expects Chevron to meet the company's target earnings for 1996 but believes they'll fall short of implied targets for 1997 and 1998. Gilman believes the valuation is too high compared to the market as well as other international oil companies.

And finally, 3M and LaserMaster Technologies Inc. announced that 3M will supply the color printer manufacturer with 3M's line of warranted thermal inkjet materials. The products can be used with LaserMaster's ColorMark, Color Management System and DisplayMaker Big Color inkjet printer.

Transmitted: 6/25/96

THE FOOLISH FOUR MODEL (6/25/96)  

           Day    Week  Quarter  Year  History
Fool-4   -0.43%  -0.29%  6.71%  15.11%  15.11%
DJIA      0.03%   0.25%  2.36%  11.77%  11.77%
S&P 500  -0.06%   0.25%  3.56%   8.53%   8.53%
NASDAQ   -0.87%  -0.23%  6.47%  11.45%  11.45%


Rec'd    #   Security  In At   Now   Change

1/2/96  148  E. Kodak  67.00  78.88  17.72%
1/2/96  380  Chevron   52.38  60.88  16.23%
1/2/96  142  DuPont    69.88  79.38  13.60%
1/2/96  149  3M        66.38  69.75   5.08%

Rec'd    #   Security       Cost       Value     Change

1/2/96  148  E. Kodak    $9,916.00  $11,673.50  $1,757.50      
1/2/96  380  Chevron    $19,902.50  $23,132.50  $3,230.00      
1/2/96  142  DuPont      $9,922.25  $11,271.25  $1,349.00      
1/2/96  149  3M          $9,889.88  $10,392.75    $502.88     

      CASH      $1,082.61        
      TOTAL    $57,552.61         



Transmitted: 6/25/96 

      
      

      
      

        

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