The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (May 16, 1997)

HEWLETT-PACKARD <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HWP)") else Response.Write("(NYSE: HWP)") end if %> melted the Blue-Chip stocks today, after posting weaker-than-expected earnings of 75 cents a share. (Analysts were looking for 80 cents.) As a result, the stock took a 10% haircut and sent the Dow tumbling.

Surprisingly, it hurt the Dow more than the technology group dominating the Nasdaq. In percentage terms, the Nasdaq Composite only lost half of what the Dow gave back. Hewlett-Packard's same quarter last year was such a spectacular one, though, making this year's comparison that much harder.

One analyst, speaking late this afternoon on CNBC, expects the next two quarters to represent better comparisons for Hewlett-Packard year-over-year, and still rates the stock a "buy," although his recommendation was tepid.

The only bright spot, if you can call it bright, was a slight gain for AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %>. Gaining a bit in a big correction day is at least a marginally positive sign. Perhaps the worst for Ma Bell is behind it and a recovery is ahead for the rest of the year. If you hold T in your Value portfolio, patience, patience, and more patience; the year's not over.

For those of you maintaining your own scorecard, there are no revisions to the list of stocks in the database this week. Just be careful to note that MOSINEE PAPER <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MOSI)") else Response.Write("(Nasdaq: MOSI)") end if %> split 3-for-2 today and GATEWAY 2000 <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GATE)") else Response.Write("(Nasdaq: GATE)") end if %> will soon be switching to the New York Stock Exchange and declared a 2-for-1 split. Have a great weekend!

Monthly Growth Screens
(Jan. 3 to present)
24.64%  Relative Strength  
10.92%  S&P 500 Index  
6.83%  Low Price/Sales  
3.51%  YPEG Potential  
-2.95%  Investing for Growth  
-10.72%  Unemotional Growth  
-14.06%  EPS Plus RS  
-21.97%  Formula 90  

Annual Value Screens
(Jan. 1 to present)
12.41%  Dogs of the Dow  
11.58%  Dow Jones Ind Avg  
7.98%  Beating the S&P  
3.24%  Unemotional Value  
3.24%  Beating the Dow  
2.11%  Dow Combo  
-3.58%  Foolish Four