The Motley Fool: The Foolish Workshop, Tuesday, December 16, 1997

Tuesday, December 16, 1997

The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (Dec. 16, 1997)

Scroll to the bottom for year-to-date Growth and Value Screen results.

I haven't updated the 1997 Keystone Approach portfolio in a bit, so let me outline the returns for the ten stocks ranked highest at the end of 1996.

If you're not familiar with the Keystone Approach, it begins with the 400 stocks in the Value Line Investment Survey ranked either 1 or 2 for Timeliness. Of those stocks, the 30 largest (by market cap) make up the field for the Keystone approach. The final screen is the previous 26-week's return. The stocks with the best returns in that screen (a form of relative strength) make up the Keystone Portfolio. For the nearly twelve years since the beginning of 1986, the five-stock version has returned an annualized 29.2%. The ten-stock version has returned 26.0%. And the S&P 500 Index has returned 17.1%.

The top ten for 1997 (and their returns through December 10) have been:

Intel <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %>             14.3%
Compaq Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPQ)") else Response.Write("(NYSE: CPQ)") end if %>     101.7%
Microsoft <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %>         72.2%
Travelers Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TRV)") else Response.Write("(NYSE: TRV)") end if %>      79.1%
BankAmerica <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAC)") else Response.Write("(NYSE: BAC)") end if %>          60.4%
Freddie Mac <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FRE)") else Response.Write("(NYSE: FRE)") end if %>          48.6%
Gillette <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: G)") else Response.Write("(NYSE: G)") end if %>               27.9%
Citicorp <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CCI)") else Response.Write("(NYSE: CCI)") end if %>             30.4%
Merck <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MRK)") else Response.Write("(NYSE: MRK)") end if %>                34.2%
Monsanto <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MTC)") else Response.Write("(NYSE: MTC)") end if %>             23.6%

Top 5        65.5%
Top 10       49.2%
S&P 500      33.0%

The current rankings for the Keystone Approach (as of last Friday) are:

Dell Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DELL)") else Response.Write("(Nasdaq: DELL)") end if %>
The Gap <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GPS)") else Response.Write("(NYSE: GPS)") end if %>
Compaq Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPQ)") else Response.Write("(NYSE: CPQ)") end if %>
Schlumberger <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %>
Computer Associates <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CA)") else Response.Write("(NYSE: CA)") end if %>
AirTouch Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ATI)") else Response.Write("(NYSE: ATI)") end if %>
Pfizer <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PFE)") else Response.Write("(NYSE: PFE)") end if %>
Halliburton <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HAL)") else Response.Write("(NYSE: HAL)") end if %>
Dayton Hudson <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DH)") else Response.Write("(NYSE: DH)") end if %>
Walgreen <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WAG)") else Response.Write("(NYSE: WAG)") end if %>

Look for an updated set of rankings Friday afternoon. Fool on!

Year-to-Date Returns
Monthly Growth Screens
74.40%  Relative Strength  
29.41%  S&P 500 Index  
17.69%  Investing for Growth  
16.77%  EPS Plus RS  
  7.48%  Formula 90  
  2.74%  Unemotional Growth  
  0.90%  YPEG Potential  
  0.89%  Low Price/Sales  

Year-to-Date Returns
Annual Value Screens
31.85%  Beating the S&P  
26.38%  Foolish Four  
23.70%  Dow Jones Ind Avg  
22.53%  Dogs of the Dow  
22.53%  Dow Combo  
20.54%  Unemotional Value  
20.54%  Beating the Dow

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