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Monday, January 27, 1997
The Daily Dow FOOL GLOBAL WIRE by Robert Sheard LEXINGTON, KY. (January 27) -- Here's the recipe for the day. Take one part brand name recognized world wide. Add a 25% increase in the quarterly dividend. Top it off with an authorization for a $2.5 billion stock buyback. What are we baking? A big winner, right? Buzz! Ding! Ding! Ding! Sorry, but thanks for playing. GENERAL MOTORS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GM)") else Response.Write("(NYSE: GM)") end if %> decided to repay its investors with some of its mountain o' cash on hand today, but Wall Street, ever contrary, punished the stock by one percent. The primary reason is that the stock ran up sharply last week in anticipation of the dividend hike and buyback announcement, and then when the actual numbers were released, the cry of "pikers!" could be heard across the land. Some analysts expected as much as a 20-cent dividend hike instead of the dime GM handed out, and as much as twice the amount for the authorized share buyback. The company ended 1996 sitting atop $17 billion in cash. Also dragging the auto-maker down was the onset of a strike of some 4,300 workers at an Ohio truck assembly plant after employees balked at the company's proposed three-year contract. The company doesn't believe there's any likelihood of the strike spilling over to other plants. This appears to be a classic case of a stock trading in the short-term on Street expectations and speculation. For a long-term investor, it doesn't mean anything. According to the Dow Approach, General Motors was a stock to look at even before today's announcement. Over the next eleven months of our model portfolio's holding period, this should only sweeten the pot, even if the traders and gurus aren't smiling about it today.	The Current BTD 10 1. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> 2. *International Paper <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> 3. *General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> 4. *Chevron Corp <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> 5. *Minnesota Mining & Mfg <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> 6. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %> 7. Exxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 8. DuPont <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 9. Texaco <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %> 10. Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> ***NOTE: FOOLISH FOUR STOCKS ARE PRECEDED BY AN ASTERISK AND ARE ITALICISED Last Update: 01/27/97
Today's Dow Numbers Stock Change Bid ------------------- T + 3/8 38.75 GM - 5/8 61.88 CHV + 1/8 66.25 MMM +1 82.00 Day Month Year History FOOL-4 +0.42% -0.75% -0.75% 28.32% DJIA -0.53% 3.29% 3.29% 30.16% S&P 500 -0.71% 3.28% 3.28% 24.21% NASDAQ -0.81% 4.79% 4.79% 28.58% Rec'd # Security In At Now Change 1/2/96 155 3M 64.50 82.00 27.12% 1/2/96 198 Chevron 52.38 66.25 26.49% 1/2/97 231 Gen. Motor 55.75 61.88 10.99% 1/2/97 618 AT&T 41.75 38.75 -7.19% Rec'd # Security In At Value Change 1/2/96 198 Chevron 10370.25 13117.50 $2747.25 1/2/96 155 3M 9998.09 12710.00 $2711.91 1/2/97 231 Gen. Motor 12878.25 14293.13 $1414.88 1/2/97 618 AT&T 25801.50 23947.50 -$1854.00 CASH $91.60 TOTAL $64159.73 Transmitted: 1/27/97

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