The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (Feb. 26, 1997)

Some odds and ends today. First, APPLIED MAGNETICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: APM)") else Response.Write("(NYSE: APM)") end if %> triggered its hypothetical stop-loss point late this afternoon when it touched $44.25. That represents a 25% drop below its closing high price of $59. Now we'll watch it over the next month or so to see if the stop loss point was a helpful one or an invitation to the Whipsaw Ball.

Our other two test cases we've watched recently still look to have been useful exit points, but there's nothing definitive to conclude, of course. Even with the impressive gain today by AMERICAN POWER CONVERSION <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: APCC)") else Response.Write("(Nasdaq: APCC)") end if %>, it remains below the stop price of $23.50 we tracked earlier this month. But with more than a point gain today, it's not all that far below the stop point.

The other test case, 3COM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COMS)") else Response.Write("(Nasdaq: COMS)") end if %> is much clearer. The stop price on 3Com was $60 a share and the stock is still trading below $40. In this case, then, it's a decisive victory for the stop loss. The jury remains out on APCC and now APM, though.

In Value Screen news, KELLOGG <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: K)") else Response.Write("(NYSE: K)") end if %> went ex-dividend today, paying out 42 cents a share. I account for all dividends on the value stocks as of the ex-dividend date, even though in reality you wouldn't see the cash in your brokerage account for another few weeks. It's the equivalent of an account payable, though. It's legally yours but you just haven't received it yet.

In case you missed last night's report, check out the new file in the Workshop Data section outlining the monthly Unemotional Growth returns from 1987 through January 1997.

Don't forget the Thoroughbred Stock Challenge. The March game is right around the corner and I'm accepting entries up until the opening bell on Monday, March 3. If you're entered in the Winter Quarterly contest, you must enter again for March to keep your quarterly entry valid. You can choose the same stocks if you like, of course, but you must submit an entry for the March contest to stay in the hunt for the quarterly title.

Monthly Growth Screens
     (Jan. 3 to present)
 22.81%  Relative Strength  
 16.85%  YPEG Potential  
 15.22%  Low Price/Sales  
  7.70%  S&P 500 Index  
  2.92%  Investing for Growth  
-11.65%  EPS Plus RS  
-12.51%  Unemotional Growth  
-13.23%  Formula 90  

Annual Value Screens
     (Jan. 1 to present)
   8.62%  Dogs of the Dow  
   8.30%  Dow Jones Ind Avg  
   6.44%  Beating the S&P  
   5.45%  Unemotional Value  
   5.45%  Beating the Dow  
   5.24%  Dow Combo  
   3.49%  Foolish Four