The Daily Dow
FOOL GLOBAL WIRE
by Robert Sheard
LEXINGTON, KY. (Oct. 20, 1997) -- What a day for the Foolish Four.
Sixty percent of the portfolio recorded big gains today, led by the over-weighted
position in our January 1997 group, AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %>.
After months of uncertainty, AT&T announced a new chairman and CEO to
replace outgoing chairman Robert Allen. C. Michael Armstrong, current chairman
at HUGHES ELECTRONICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GMH)") else Response.Write("(NYSE: GMH)") end if %> will be taking over the top spot
at AT&T effective
November 1.
Adding to investor relief was AT&T's better-than- expected earnings
for the quarter, also announced today. Earnings fell 15% from last year's
level, but the 71 cents a share nevertheless beat the consensus estimates
of 65 cents. The company also announced that it plans to have completed the
sale of its Universal Card Services and customer solutions units by the middle
of next year.
Representing 40% of the Foolish Four model portfolio, today's 5% jump in
AT&T gave the lagging model returns a much-needed boost.
Also strong today was CHEVRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CHV)") else Response.Write("(NYSE: CHV)") end if %>, amid a very strong oil
group. Chevron announced that it is selling its marketing interests in Gulf
Oil (Great Britain) to Shell UK Ltd. The stock was up over three percent.
Even with two stocks staying out of today's Dow rally, it was a fine day
for the Foolish Four portfolio. There's still a chance the model returns
can overtake the market for 1997. Stay tuned.
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