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Wednesday, March 5, 1997
The Daily Dow FOOL GLOBAL WIRE by Robert Sheard LEXINGTON, KY. (Mar. 5, 1997) -- Danger, Danger, Will Robinson!! For aficionados of the Unemotional Value approach, we're now in one of those peculiar situations where the highest-yielding Dow stock is also the cheapest of the elite group. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %> has surpassed PHILIP MORRIS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %> in the high-yield rankings as the top stock in the Dow. But it also has the lowest share price of the ten top yielders. Historically, this has frequently been a red flag. In fact, most of the years since 1961 where this occurred haven't been very pretty. The Unemotional Value method skips stocks in such a position, just as the Foolish Four approach always skips the cheapest stock of the high yielders. This isn't a problem for investors who are about to invest or update; you'd simply skip AT&T and pick up the next stocks in the rankings. But what about if you bought AT&T a month ago, or two months ago? Should you dump it and buy something else? My general response is always to stick with what you've bought for the full year. The approach has worked so well for so long, I don't believe I'm capable of out-smarting it on a stock-by-stock basis and generally like to play by the book here. But of course, you're always responsible for making your own decisions and if you decide to ditch AT&T, that's your option. But I wanted to call attention to the change in the rankings for this special case lest anyone just about to invest or update missed the change. In fact, I missed it until a sharp reader pointed it out to me this morning. Whatever you choose to do, make sure you understand what you're doing and why. To react too quickly to any small change of rankings is too reactionary for poor Fools -- especially as March Madness begins and we all know what really matters: can Kentucky repeat? Fool on! (c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.	The Current BTD 10 1. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> 2. *International Paper <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> 3. *Goodyear Tire <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GT)") else Response.Write("(NYSE:GT)") end if %> 4. *General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> 5. *Chevron <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> 6. Minnesota Mining <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> 7. Exxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 8. Texaco <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %> 9. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %> 10. Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> ***NOTE: FOOLISH FOUR STOCKS ARE PRECEDED BY AN ASTERISK AND ARE ITALICISED Last Update: 03/05/97
Today's Dow Numbers Stock Change Last -------------------- T + 3/8 36.38 GM - 1/8 56.88 CHV + 1/4 65.38 MMM +1 7/8 92.00 Day Month Year Since 1996 FOOL-4 +0.87% -3.39% -2.21% 26.44% DJIA +1.36% 0.99% 7.72% 35.74% S&P 500 +1.40% 1.41% 8.27% 30.21% NASDAQ +0.89% 1.53% 2.95% 26.32% Rec'd # Security In At Now Change 1/2/96 155 3M 64.50 92.00 42.63% 1/2/96 198 Chevron 52.38 65.38 24.82% 1/2/97 231 Gen. Motor 55.75 56.88 2.02% 1/2/97 618 AT&T 41.75 36.38 -12.87% Rec'd # Security In At Value Change 1/2/96 155 3M 9998.09 14260.00 $4261.91 1/2/96 198 Chevron 10370.25 12944.25 $2574.00 1/2/97 231 Gen. Motor 12878.25 13138.13 $259.88 1/2/97 618 AT&T 25801.50 22479.75 -$3321.75 CASH $396.17 TOTAL $63218.30

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