The Dow Approach - Friday, March 21, 1997

The Dow Approach

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Friday, March 21, 1997

The Daily Dow

FOOL GLOBAL WIRE
by Judi Soderberg (MF Shrimp)
Hoffman Estates, IL (Mar. 21, 1997) -- Perhaps it is the fact that it's the first day of spring, or perhaps it's just investors getting tired of the fear that interest rates will rise, but all in all, today was a fairly quiet day in the market. This was a welcome change for me, since this is the last day I'll be writing this report. I can hand the reins back to Robert Sheard (MF Dowman) on Monday, so controversy wasn't what I wanted for the day. Talk about great timing.
The Fool 4 portfolio had some ups and downs this week, with the portfolio being brought down mostly by MINNESOTA MINING AND MANUFACTURING <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MMM)") else Response.Write("(NYSE: MMM)") end if %>. The problem seemed to stem from its claims that some of its products had pesticide properties. The Environmental Protection Agency (EPA) had prohibited it from selling these products, but amended that yesterday to allow temporary selling of the products. This news took its toll on the stock price this week. With 3M falling $2 5/8 on the week, it cancelled out the $2 3/8 rise in CHEVRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CHV)") else Response.Write("(NYSE: CHV)") end if %>.
On the whole, the portfolio didn't do too bad considering the way the market acted all week. We closed, in preliminary numbers, down $2 1/8 for the week. These time-honored companies weathered this particular storm very well, just another point in favor of this method of investing.
On another note, I was reading one of the infamous newsletters that crowd my mailbox each day, and was surprised to be told that I needed to get out of most of the Dow stocks --and get out now. What was their reasoning? Insider selling. So, I took a look at the insider selling activity for the stocks in our portfolio. Here is what I found:
Last 6 months Shares Sold Shares bought GM 0.10 million 0 CHV 0.02 million 0.02 million MMM 0 0 T 0 0

Well, judging from this, I'd say a new scare tactic is in the works, but I don't see anything to get alarmed about. With GENERAL MOTORS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GM)") else Response.Write("(NYSE: GM)") end if %>, it seems possible some insiders needed cash. Or maybe they see car sales as being soft in the coming months due to interest rate increases. Who knows? That in itself won't make me sell my shares. For Chevron, it looks like some folks simply exercised employee stock options. No big deal there either. This is exactly why I hate these newsletters. How many people out there believe this without checking it out? Will this hurt the companies?
With companies as strong as the 4 in our portfolio, the chances of one newsletter managing to scare investors out of owning them is fairly slim. For my part, I like to keep in mind that the companies used in the Dow Dividend Approach are strong, growing, stable companies, and I won't let scare tactics influence my portfolio. This is another good thing about using the Dow Approach. It is so unemotional that we don't need to worry about the doomsayers out there. Just buy, hold, and rake in the profits. Great way to invest, as far as I'm concerned.
This week has been a lot of fun for me. I'd like to thank you all for allowing me this time to express my views. I'm sure you're all looking forward to Robert's return as much as I am. So, thanks again, and happy spring to all!
And remember, make your plans now for the April Fool's Day party. Tickets are going fast. If you're using an older version of the AOL software, please feel free to call Foolmart to order your tickets. The number is 1-888-665-3665. Our own MF Speedy will be there to take your order. Celebrate April Fool's Day with your Foolish friends! For those of you in the Chicago area, I'm really looking forward to meeting you all. See you there! 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. J.P. Morgan
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %>

9. DuPont
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DD)") else Response.Write("(NYSE:DD)") 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
Updated Daily

Today's Dow Numbers

Stock Change Last -------------------- T + 1/8 34.5 GM + 7/8 57 CHV + 1 3/8 69.25 MMM - 1 1/2 87.13
Day Month Year Since 1996 FOOL-4 +0.52% -5.10% -3.94% 24.20% DJIA -0.23% -1.06% 5.53% 32.98% S&P 500 +0.19% -0.85% 5.85% 27.30% NASDAQ -0.41% -4.20% -2.86% 19.19% Rec'd # Security In At Now Change 1/2/96 155 3M 64.50 87.13 35.07% 1/2/96 198 Chevron 52.38 69.25 32.22% 1/2/97 231 Gen. Motor 55.75 57.00 2.24% 1/2/97 618 AT&T 41.75 34.50 -17.37% Rec'd # Security In At Value Change 1/2/96 155 3M 9998.09 13504.38 $3506.29 1/2/96 198 Chevron 10370.25 13711.50 $3341.25 1/2/97 231 Gen. Motor 12878.25 13167.00 $288.75 1/2/97 618 AT&T 25801.50 21321.00 -$4480.50 CASH $396.17 TOTAL $62100.05

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Copyright©1997, The Motley Fool, All Rights Reserved.
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