Investing For Growth

What You'll Find Here | The IFG Approach Explained | The IFG Statistics Center
Wednesday May 8, 1996
The Daily IFG Report (FOOL GLOBAL WIRE) by Robert Sheard (MF DowMan) LEXINGTON, Ky. (May 8): After posting disappointing earnings yesterday, United HealthCare <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:UNH)") else Response.Write("(NYSE:UNH)") end if %> went a round with the clippers today. Salomon Brothers analyst Robert Hoehn snipped earnings estimates from $3.00 a share to $2.81 for 1996, and $3.75 to $3.45 for 1997. Alex. Brown followed suit today, cutting the stock's rating from Strong Buy to Buy and shaving estimates. 1996 estimates were lowered from $2.87 to $2.75 and 1997 numbers were cut from $3.59 to $3.30. Alex. Brown also reduced its annual growth rate estimate from 25% to 20%. None of the other IFG stocks had news cross the wire today so let me take this chance to fill you in on our ongoing research. As you know, the Relative Strength version of IFG is outperforming the classic IFG approach considerably this year. The problem, however, is that we haven't yet back-tested the approach for a longer period. I'm currently compiling the database I need in order to test this, both as a quarterly and a monthly model. Investor's Business Daily is available on microfilm/microfiche back to 1991, and from 1984 to 1991 as Investor's Daily, its earlier name. So, as soon as the Inter-Library Loan department gets me the IBD materials, we can start compiling a test from 1984 to the present (a little more than 12 years' worth of data). Fortunately, my library has saved Value Lines back to 1979, so I'm able to recreate the lists of stocks we would have used then if doing this in real-time. Give us a few weeks to gather the materials and sort through the database, and then as soon as we can, we'll report the numbers, even if they prove disappointing. Our quick search of 1995 results showed that while the RS version did outperform the Classic approach, it still suffered some under the weight of Micron Technology's collapse (especially in the quarterly model). So, the jury remains out on its long-term performance. But I'll wait until we have a complete test before I start throwing numbers out to keep confusion down. Stay tuned! Transmitted: 5/8/96	The Current IFG Stocks Quick & Reilly Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:BQR)") else Response.Write("(NYSE:BQR)") end if %> Green Tree Financial <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GNT)") else Response.Write("(NYSE:GNT)") end if %> Oracle <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:ORCL)") else Response.Write("(NASDAQ:ORCL)") end if %> Sterling Software <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:SSW)") else Response.Write("(NYSE:SSW)") end if %> Checkpoint Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CKP)") else Response.Write("(NYSE:CKP)") end if %> Dionex <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:DNEX)") else Response.Write("(NASDAQ:DNEX)") end if %> Medtronic <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MDT)") else Response.Write("(NYSE:MDT)") end if %> RoTech Medical <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:ROTC)") else Response.Write("(NASDAQ:ROTC)") end if %> Bio-Rad Labs (ASE:BIO/A) Computer Associates <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CA)") else Response.Write("(NYSE:CA)") end if %>
Today's IFG Numbers INVESTING FOR GROWTH MODEL (5/8/96) Day Week Quarter Year History IFG 0.48% -0.13% 1.43% 0.90% 4005.25% DJIA 0.98% -0.07% -2.02% 6.98% 560.45% S&P 500 1.02% 0.49% -0.11% 4.68% 505.31% NASDAQ 0.05% -0.11% 7.44% 12.46% 699.39% Rec'd # Security In At Now Change 1/5/96 3183 CA 56.13 72.25 28.73% 7/8/95 3866 TLAB 48.00 57.63 20.05% 1/5/96 6252 ORCL 28.58 32.88 15.01% 4/5/96 4536 BIO/A 45.38 49.00 7.99% 4/5/96 5758 DNEX 35.75 37.25 4.20% 4/5/96 5312 ROTC 38.75 39.50 1.94% 4/5/96 7695 CKP 26.75 25.88 -3.27% 4/5/96 5945 GNT 34.63 32.25 -6.86% 4/5/96 3293 UNH 62.50 54.25 -13.20% 4/5/96 3525 MDT 58.38 50.50 -13.49% Rec'd # Security Cost Value Change 1/5/96 3183 CA $178,645.88 $229,971.75 $51,325.88 7/8/95 3866 TLAB $185,568.00 $222,778.25 $37,210.25 1/5/96 6252 ORCL $178,703.00 $205,534.50 $26,831.50 4/5/96 4536 BIO/A $205,821.00 $222,264.00 $16,443.00 4/5/96 5758 DNEX $205,848.50 $214,485.50 $8,637.00 4/5/96 5312 ROTC $205,840.00 $209,824.00 $3,984.00 4/5/96 7695 CKP $205,841.25 $199,108.13 $(6,733.13) 4/5/96 5945 GNT $205,845.63 $191,726.25 $(14,119.38) 4/5/96 3293 UNH $205,812.50 $178,645.25 $(27,167.25) 4/5/96 3525 MDT $205,771.88 $178,012.50 $(27,759.38) CASH $274.44 TOTAL $2,052,624.57 Transmitted: 5/8/96
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