Investing For Growth

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Wednesday, November 13, 1996
The Daily IFG Report FOOL GLOBAL WIRE by Robert Sheard (MF DowMan) LEXINGTON, KY. (November 13): After getting whacked yesterday amid rumors of brokerage downgrades and a bad environment for PCs, Dell Computers <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:DELL)") else Response.Write("(NASDAQ:DELL)") end if %> posted strong earnings today and gave the whole sector a booster shot. Investing for Growth stocks like SCI Systems and 3Com benefited from the momentum and recovered some of yesterday's losses. Unfortunately, the strength there didn't carry over very far into other areas of the portfolio. Several readers new to our area have expressed some concern that there's always a new acronym to translate or a new set of screens to track, so I thought I'd take this somewhat slow news day to try to map out just what we're trying to do with Investing for Growth and the other research we do here. This whole area is really a real-time investment workshop. (In fact, our own MF Selena came up with that term in our discussions of the area, and it suits what we do aptly.) But the real purpose of what we do here isn't necessarily to find a magic bullet formula that will work for everyone at all times. By testing different screening techniques and strategies, we're able to identify the factors for certain types of stocks which seem to point towards possible winners. Whether that's the Fool Ratio for small-cap growth stocks, the EPS and RS rankings for mid- to large-cap growth stocks, or the Price/Sales ratio pointed out by James O'Shaughnessy in his new book, What Works on Wall Street, they're all ways of narrowing the field down to a handful of stocks to look at further. So, don't be daunted if we track a lot of different screens here, or even if we generate several new ones in years ahead. That's undoubtedly going to happen. Look at them all as options for you to start with when you decide which growth stocks you want to stack on top of your core Dow holdings. If the extra work of dealing with these screens puts you off, don't let it get to you. Just work with the Dow Approach, knowing that over time, you're still crushing Wall Street. The rest is a bonus. (We just like playing with bonuses!) Fool on!	The Current IFG Stocks Nike <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:NKE)") else Response.Write("(NYSE:NKE)") end if %> Nautica Enterprises <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:NAUT)") else Response.Write("(NASDAQ:NAUT)") end if %> Green Tree Financial <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GNT)") else Response.Write("(NYSE:GNT)") end if %> Tellabs <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:TLAB)") else Response.Write("(NASDAQ:TLAB)") end if %> ADC Telecom <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:ADCT)") else Response.Write("(NASDAQ:ADCT)") end if %> Three Com <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:COMS)") else Response.Write("(NASDAQ:COMS)") end if %> Western Digital <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:WDC)") else Response.Write("(NYSE:WDC)") end if %> Sun Microsystems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:SUNW)") else Response.Write("(NYSE:SUNW)") end if %> Compaq Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CPQ)") else Response.Write("(NYSE:CPQ)") end if %> Claire's Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CLE)") else Response.Write("(NYSE:CLE)") end if %> Last Update: 11/11/96
Today's IFG Numbers INVESTING FOR GROWTH MODEL (11/13/96) Day Week Quarter Year History IFG 0.32% -0.07% 2.62% 14.10% 4541.95% DJIA 0.13% 0.87% 6.67% 22.61% 656.99% S&P 500 0.22% 0.04% 6.37% 18.70% 586.38% NASDAQ 0.33% 0.26% 2.75% 19.82% 751.72% Bought # Stock In At Now Change 7/8/95 3866 TLAB 48.00 85.25 77.60% 7/5/96 4562 COMS 44.38 71.38 60.85% 7/5/96 5077 SCIS 39.88 57.50 44.20% 10/4/96 6250 ADCT 32.00 35.75 11.72% 10/4/96 4001 KO 50.00 52.00 4.00% 7/5/96 8756 MIR 23.13 23.38 1.08% 10/4/96 6063 NAUT 33.00 32.75 -0.76% 10/4/96 4879 GNT 41.00 39.75 -3.05% 10/4/96 3218 NKE 62.13 55.38 -10.87% 10/4/96 9642 CLE 20.75 17.25 -16.87% Bought # Stock Cost Value Change 7/8/95 3866 TLAB $185,568.00 $329,576.50 $144,008.50 7/5/96 4562 COMS $202,438.75 $325,612.75 $123,174.00 7/5/96 5077 SCIS $202,445.38 $291,927.50 $89,482.13 10/4/96 6250 ADCT $200,000.00 $223,437.50 $23,437.50 10/4/96 4001 KO $200,050.00 $208,052.00 $8,002.00 7/5/96 8756 MIR $202,482.50 $204,671.50 $2,189.00 10/4/96 6063 NAUT $200,079.00 $198,563.25 $(1,515.75) 10/4/96 4879 GNT $200,039.00 $193,940.25 $(6,098.75) 10/4/96 3218 NKE $199,918.25 $178,196.75 $(21,721.50) 10/4/96 9642 CLE $200,071.50 $166,324.50 $(33,747.00) CASH $672.07 TOTAL $2,320,974.57 Transmitted: 11/13/96

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