The Daily Dow
Tuesday, July 30, 1996
by Robert Sheard

LEXINGTON, KY. (July 30): A late-day rally turned what looked to be a repeat of yesterday's blues into a fair day for the Foolish Four model. Except for Chevron, all of the model's holdings gained on the day, even laggard Imation (the recent 3M spin-off).

After yesterday's solid earnings, 3M was upgraded today by Merrill Lynch to a near-term accumulate from neutral. Long-term, Merrill maintained a buy rating on 3M. Of course, the perennial question is how do you "accumulate" a stock without "buying" it, short of inheriting it?

Even Imation joined today's rally after the company announced that it will sell its offset printing plate production facility in Sulmona, Italy, to LASTRA Group of Manerbio, Italy, a producer of printing equipment. Terms of the sale weren't disclosed but the company claims the proposed transaction (scheduled to take place in August) will have no impact on its reported financial results for 1996.

So, do you think we have too many acronyms (BTD, PPP, and the like) floating around the Beating the Dow folder? (Unfortunately, these folders are only on our AOL site. Web Site readers don't yet have access to our message boards. Come join us on AOL to take part in all the discussions.) Well, are you ready for a new one?

I'm not sure what to call it yet, but in playing around with the Dow Approach, I've come across a little gem that I'd overlooked before. It's a way that's virtually as simple as the PPP we all talk about as a terrific one-stock approach, and yet it performs better. I'll just leave you with that little teaser tonight with the understanding that the full details will be the subject of tomorrow morning's Fribble. Look for the details there.

Transmitted: 7/30/96

THE FOOLISH FOUR MODEL (7/30/96)  

          Day    Week   Quarter  Year  History
Fool-4   0.49%  -0.05%  -2.67%  10.04%  10.04%
DJIA     0.87%   0.16%  -3.05%   7.13%   7.13%
S&P 500  0.69%  -0.10%  -5.27%   3.14%   3.14%
NASDAQ   0.52%  -0.69%  -9.54%   1.88%   1.88%


Bought   #   Stock     In At   Now    Change

1/2/96  142  DuPont    69.88  80.00   14.49%
1/2/96  148  E. Kodak  67.00  73.38    9.51%
1/2/96  380  Chevron   52.38  57.13    9.07%
1/2/96  149  3M        63.76  65.00    1.95%
7/16/96  14  Imation   26.16  21.50  -17.81%

Bought   #   Stock         Cost       Value       Change

1/2/96  142  DuPont      $9,922.25  $11,360.00  $1,437.75    
1/2/96  148  E. Kodak    $9,916.00  $10,859.50    $943.50   
1/2/96  380  Chevron    $19,902.50  $21,707.50  $1,805.00    
1/2/96  149  3M          $9,500.09   $9,685.00    $184.91   
7/16/96  14  Imation       $366.21     $301.00    $(65.21)  

      CASH      $1,106.15      
      TOTAL    $55,019.15      



Transmitted: 7/30/96

      
      

      
      

        

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