The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (July 16, 1997)  On May 9, 1997, I wrote in this column how wonderful an investor could have done over recent years simply by investing across a range of large-cap technology stocks and holding on. Not just the obvious choices like MICROSOFT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %> and INTEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %>, but many of the biggest stocks in the sector.

So far, 1997 is keeping the trend alive, even in a year when the Nasdaq Composite Index (which is typically associated with hi-tech stocks because of the influence Microsoft and Intel have on the Index) lags the Dow Jones Industrial Average and the S&P 500 Index.

Taking the fifteen largest technology stocks this year and buying them in equal-dollar amounts would have you absolutely thrashing the market, more than doubling the impressive returns for the S&P 500 so far.

Let's look at all fifteen, ranked by gains so far in 1997. (These returns only include capital gains. No dividends or trading costs are included.)

178% Dell Computer DELL
133% Applied Materials AMAT
92% Lucent Technologies LU
80% Compaq Computer CPQ
80% Microsoft MSFT
79% Texas Instruments TXN
75% Sun Microsystems SUNW
47% Motorola MOT
38% Oracle ORCL
37% Hewlett-Packard HWP
35% Intel INTC
32% Computer Associates CA
29% Int'l Business Machines IBM
25% Cisco Systems CSCO
3% Seagate Technologies SEG

The overall portfolio has grown by 64% so far in 1997, wiping out the otherwise awesome performance of the S&P 500, which is up 26% for the year. If technology stocks continue to surge as they have lately, and the Nasdaq actually catches up to the S&P 500 and DJIA for 1997, look out. It could be yet another record year for technology issues.

Monthly Growth Screens
(Jan. 3 to present)
47.37%  Relative Strength  
25.21%  S&P 500 Index  
18.15%  Unemotional Growth  
17.35%  Investing for Growth  
17.20%  Low Price/Sales  
9.47%  EPS Plus RS  
7.66%  YPEG Potential  
-7.22%  Formula 90  

Annual Value Screens
(Jan. 1 to present)
24.67%  Dow Jones Ind Avg  
21.35%  Beating the S&P  
19.01%  Dogs of the Dow  
15.99%  Unemotional Value  
15.99%  Beating the Dow  
14.25%  Dow Combo  
 3.79%  Foolish Four