The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (May 5, 1997)

Except for MICROSOFT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %>, technology stocks (especially Nasdaq issues) scored another flashy gain today. Microsoft was taken down a peg when Goldman Sachs noticed the stock was up more than 40% year-to-date and mentioned it might not do as well short-term as other stocks which have lagged up to this point.

But Goldman Sachs remains very positive on the long-term prospects for the stock and retains it on their recommended list. I don't often mention my own portfolio here, but I own some MSFT and I have a hard time taking such a comment as anything meaningful. Sure, it may not out-perform everything else over the next 6 months, but I can't see it lagging the market over the next several years. Hey, you know Windows has won the battle when a long-time Macintosh zealot like myself has even switched to a Wintel box. :-)

Switching topics, the verdict just came in in the Florida trial again R.J. Reynolds and the tobacco company was found "not negligent" in the death of a long-time smoker. This will be considered a major litigation victory for tobacco companies. After being in the red all day, tobacco stocks staged a rally immediately after the verdict was announced.

The question now is whether this helps the tobacco firms in their negotiations toward a settlement or makes the companies even bolder and steels them not to settle in favor of taking their chances for similar verdicts in other cases.

Today represents the first day of our new monthly period in the Workshop. Keep in mind that each new month starts with the assumption of an even weighting of all positions in the screens. Also, today is the first day I'm using a new automated system for updating the daily performance numbers. If you see any glaring errors, please drop me an e-mail as I make sure all the bugs are out. Stay Foolish!

Monthly Growth Screens
(Jan. 3 to present)
 28.98%  Relative Strength  
 10.99%  S&P 500 Index  
  8.37%  Low Price/Sales  
  8.00%  YPEG Potential  
  0.12%  Investing for Growth  
 -3.81%  Unemotional Growth  
-11.38%  EPS Plus RS  
-24.93%  Formula 90  

Annual Value Screens
(Jan. 1 to present)
13.96%  Dogs of the Dow  
11.87%  Dow Jones Ind Avg  
 8.42%  Beating the S&P  
 3.23%  Unemotional Value  
 3.23%  Beating the Dow  
 2.98%  Dow Combo  
-2.91%  Foolish Four