The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (June 10, 1997)

We're back to the pattern of several weeks ago, where the Dow keeps soaring and the Nasdaq Composite lags a bit. But at these lofty levels, it's hard to find fault, isn't it?

An eagle-eyed reader pointed out that I botched a portion of this month's Growth Screen update, so let me make sure everyone catches the change. On the YPEG Screen, while I included the correct five stocks in the new monthly model, I somehow listed the wrong ten stocks in the current rankings list. That error should be cleared up with today's report. As always, please send me an e-mail if you see an error in the Workshop. I fumble the ball occasionally and it's nice to have sharp eyes watching out for us all.

If you've been following the tax debate (a topic near-and-dear to investors this year, with the promise of a capital gains tax cut), you may have heard the latest proposal by Bill Archer of the House Ways and Means Committee. If Archer's plan goes through, the maximum tax rate on long-term capital gains would drop from 28% to 20% for taxpayers making $41,000 and up, and to 10% for those under that level. (I don't know if this is for individuals or joint returns; the details are still being debated, obviously.)

Another aspect of Archer's plan is to index one's cost basis in stocks for inflation, so that when you do sell, you're not paying tax on what is simply appreciation from inflation. Stay tuned for details; this promises to be an interesting summer of debate.

For those of you holding QUANTUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QNTM)") else Response.Write("(Nasdaq: QNTM)") end if %>, yes, indeed, the stock split 2-for-1 today. You didn't really lose half your stake.

On a personal note: I'll be taking a few days off (until Tuesday), so until then, enjoy yourself and Fool on!

Monthly Growth Screens
(Jan. 3 to present)
31.95%  Relative Strength  
15.67%  S&P 500 Index  
15.42%  Low Price/Sales  
-3.27%  Investing for Growth  
-4.24%  YPEG Potential  
-7.17%  Unemotional Growth  
-9.98%  EPS Plus RS  
-19.30%  Formula 90

Annual Value Screens
(Jan. 1 to present)
16.92%  Dogs of the Dow  
16.92%  Dow Jones Ind Avg  
11.73%  Beating the S&P  
 9.03%  Unemotional Value  
 9.03%  Beating the Dow  
 9.00%  Dow Combo  
 1.74%  Foolish Four