The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (June 18, 1997)  It's time to update the large-cap technology stock rankings again. If you've been following along in this area over the last few months, we've been discussing an experimental technology strategy where one identifies the 15 or 20 largest hi-tech stocks and then sorts those by recent relative strength (total returns).

Today, then, I'm including the 20 largest hi-tech stocks, and their total returns through June 11 over three periods (the last year, the last six months, and the last quarter). The stocks are listed in market cap order:

Company Name           3 Mos    6 Mos  12 Mos
Microsoft Corp.         28.61   52.32   108.84
Intel Corp.              3.36    7.83   101.02
Int'l Business Mach.    20.42   12.01    63.58
Hewlett-Packard         -4.38   -2.16    -2.17
Lucent Technologies     17.42   39.12    68.21
Cisco Systems           25.19   -6.34    23.74
Motorola  Inc.          20.13   27.94     0.30
Oracle Corp.            42.68    1.43    39.82
Compaq Computer         25.83   18.37   122.37
Computer Associates     37.30  -13.02    13.09
First Data Corp.        15.45    8.98     0.45
Dell Computer           53.67   83.51   306.32
Electronic Data Sys.   -11.71  -13.34   -32.56
Texas Instruments       -1.41   25.22    61.44
Automatic Data Proc.     8.08   17.91    29.34
Sun Microsystems        14.71   11.89     2.99
Applied Materials       21.03   61.24    75.17
Seagate Technology     -18.95   -5.52    38.30
Micron Technology       -3.90   11.11    31.52
3Com Corp.              37.86  -39.70    -1.52

The Top 5 sorted by Total Return over the last 12 months are: Dell, Compaq, Microsoft, Intel, and Applied Materials.

The Top 5 sorted by Total Return over the last 6 months are: Dell, Applied Materials, Microsoft, Lucent Technologies, and Motorola.

The Top 5 sorted by Total Return over the last 3 months are: Dell, Oracle, 3Com, Computer Associates, and Microsoft.

On a day like today, with SEAGATE TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SEG)") else Response.Write("(NYSE: SEG)") end if %> and GATEWAY 2000 <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GTW)") else Response.Write("(NYSE: GTW)") end if %> both spooking the Street with earnings warnings, it's hard to look at technology perhaps, but keep in mind the volatility these stocks have experienced over the last five to ten years and then look at the long-term annual returns. For the courageous long-term investor, these stocks represent a fruitful starting point for further research. Fool on!

Monthly Growth Screens
(Jan. 3 to present)
34.62%  Relative Strength  
18.86%  S&P 500 Index  
16.74%  Low Price/Sales  
1.94%  Investing for Growth  
-0.66%  YPEG Potential  
-2.07%  Unemotional Growth  
-7.23%  EPS Plus RS  
-17.63%  Formula 90  

Annual Value Screens
(Jan. 1 to present)
19.85%  Dogs of the Dow  
19.70%  Dow Jones Ind Avg  
12.50%  Beating the S&P  
10.56%  Unemotional Value  
10.56%  Beating the Dow  
9.16%  Dow Combo  
4.12%  Foolish Four