The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (Apr. 15, 1997)

Despite the rally in the Dow today, the Nasdaq remained mired in the Slough of Despond. Technology stocks took their cue from INTEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %>, which dropped, even after posting an earnings report last night that surpassed all expectations.

What scared off investors this time around is a warning that future earnings and margins may not sustain this kind of pace. Color me skeptical, but haven't we heard this song and dance on Intel every quarter? The company guides analysts down so they won't put up outrageous estimates, and then Intel comes along and knocks them down like skittles.

Just so you know I'm not trying to hype the stock (as if I could move Intel anyway), I don't currently own any. But let's look at some facts. Intel doesn't just dominate its market; it is the market. It has a market share of some 85%. It's miles ahead of the competition in research and development. It's now the fourth-largest American company.

The real test, though, is Intel's stock performance. From January 1987 to the end of 1996, Intel's stock price has grown at an annualized rate of 43.4%. Absolutely phenomenal. A decade of growth at that pace. Hmmm. Maybe I'll pick some up after all!

Today, though, the stock slumped, taking the Nasdaq down with it. No one knows what's directly ahead, of course, but it's real hard for me to believe Intel's going to fall apart any time soon. Do some homework on this one, Fools. Maybe this is one of those dips we're always hearing about during which we should "accumulate" the stock. (And if you know how to "accumulate" it without "buying" it, let me know your secret.)

Monthly Growth Screens
(Jan. 3 to present)
 14.67%  Relative Strength  
  0.89%  S&P 500 Index  
 -3.00%  Low Price/Sales  
 -3.31%  YPEG Potential  
 -5.78%  Investing for Growth  
-17.57%  EPS Plus RS  
-22.96%  Unemotional Growth  
-24.42%  Formula 90  

Annual Value Screens
(Jan. 1 to present)
 4.10%  Dogs of the Dow  
 2.22%  Beating the S&P  
 2.15%  Dow Jones Ind Avg  
-4.65%  Unemotional Value  
-4.65%  Beating the Dow  
-4.71%  Dow Combo  
-8.01%  Foolish Four