<THE FOOLISH FOUR>

Foolish Four Report
by Robert Sheard

LEXINGTON, KY. (Feb. 24, 1998) -- Bucking today's general trend south, Dow component and mega-retailer Wal-Mart <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMT)") else Response.Write("(NYSE: WMT)") end if %> continued its winning ways after posting better-than-expected earnings for its fiscal fourth quarter.

Earnings for the quarter rose 19%, from 48 cents to 57 cents a share. Wall Street analysts were expecting only 55 cents a share. Net income rose from $1.1 billion to $1.29 billion year-over-year. And the good news should continue into 1999, according to President and CEO David Glass.

While Wal-Mart is not in any danger of becoming a Foolish Four stock with its paltry yield of less than 0.6%, it has been one of the stalwarts of the Dow over the last year. Since this time last year, Wal-Mart shares have risen from $24 to their current level near $47 -- just a buck a share away from a gong-ringing double.

Interestingly, the other Dow retail stock, Sears <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: S)") else Response.Write("(NYSE: S)") end if %>, is also on a bit of a roll recently. After a miserable 1997, where the stock ended the year virtually where it began (even after dividends), Sears is leading the Dow 30 race through February 18, with a 23% gain for the first seven weeks of the year. It seems to have bottomed out in the months from November to January and has started a recovery.

A few of you may even have picked up Sears as a Foolish Four stock in that period, when its lowest prices pushed it into the rankings briefly. If so, you're seeing the usual pattern already in effect. A stock that has been out of favor for quite some time has begun a move. How long and how dramatic the rally lasts remains to be seen, but those of you who picked it up from the Dow rankings look to have picked it up at its lows -- a nice bonus that doesn't always happen. Fool on!

[Want to be the first Fool on your block to get a copy of Robert Sheard's forthcoming book? Click here to pre-order your copy of The Unemotional Investor.]

TODAY'S NUMBERS
Stock  Change   Last 
 -------------------- 
 UK   -1        45.38 
 IP   -   1/2   47.00 
 MO   -   1/8   41.19 
 EK   -   3/8   65.00 
 
            
                    Day   Month    Year 
         FOOL-4   -1.05%   1.37%   3.24% 
         DJIA     -0.48%   5.86%   5.84% 
         S&P 500  -0.73%   5.13%   6.20% 
         NASDAQ   -0.74%   7.37%  10.72% 
  
     Rec'd   #  Security     In At       Now    Change 
  
  12/31/97  289 Int'l Pape    43.13     47.00     8.99% 
  12/31/97  206 Eastman Ko    60.56     65.00     7.33% 
  12/31/97  291 Union Carb    42.94     45.38     5.68% 
  12/31/97  276 Philip Mor    45.25     41.19    -8.98% 
  
  
     Rec'd   #  Security     In At     Value    Change 
  
  12/31/97  289 Int'l Pape 12463.13  13583.00  $1119.88 
  12/31/97  206 Eastman Ko 12475.88  13390.00   $914.13 
  12/31/97  291 Union Carb 12494.81  13204.13   $709.31 
  12/31/97  276 Philip Mor 12489.00  11367.75 -$1121.25 
  
  
                              CASH     $77.19 
                             TOTAL  $51622.07