Workshop Portfolio

<FOOLISH WORKSHOP>

Bits & Bytes

by Jim Stevens (JimStevens@aol.com)

Burlington, VT (January 25, 1999) -- Greetings, technology buffs and fans of the Bits and Bytes Portfolio. Tonight we check in on the Workshop's mini-sector fund of large capitalization high tech stocks. First I'll refresh your memories and fill in new visitors. The Bits and Bytes port is a mechanical screen that selects the 15 companies with the largest market capitalizations that are designated as being in the following sectors by the Value Line Investment Survey: Computers & Peripherals, Internet, Software, Semiconductors, and Telecommunications Equipment. It's that simple.

These stocks have really had a nice run over the recent months and years. An investor would have done very well to make this sector a part of his or her portfolio. In my Three Experimental Screens daily Workshop report, I fleshed out a 15-stock hypothetical portfolio as of the 12/31/98 year end data. Here's the latest performance of that port, through last Friday's closing bell:

Yahoo! Inc. (Nasdaq: YHOO)    20.71%
America Online (NYSE: AOL)    -9.47%
Sun Micro (Nasdaq: SUNW)      14.45%
EMC Corp. (NYSE: EMC)         15.88%
Oracle Corp. (Nasdaq: ORCL)   15.65%
Int'l Bus. Mach. (NYSE: IBM)  -2.51%
Intel Corp. (Nasdaq: INTC)     8.70%
Dell Computer (Nasdaq: DELL)  13.41%
Cisco Systems (Nasdaq: CSCO)  10.77%
Compaq Computer (NYSE: CPQ)    9.97%
Texas Instruments (NYSE: TXN)  8.61%
Lucent Tech. (NYSE: LU)       -6.03%
Microsoft (Nasdaq: MSFT)      12.66%
Motorola Inc. (NYSE: MOT)     13.00%
Hewlett-Packard (NYSE: HWP)    1.92%

Average gain/loss (all 15)     8.52%
Top 5                         11.45%
Top 10                         9.76%

The end of last week showed a substantial hiccup in the stocks. For the year so far, they are whooping up on the benchmark Standard & Poor's 500 Index, which is up just a fraction of a percentage on the year.

I ran the screen once more on the most recent 1/20/99 Value Line update. The stock list remained the same as the "1999 Start" stocks listed above. Here it is, listed with 26-week total returns as of last Wednesday in descending order.

Yahoo! Inc.        196.45%
America Online     127.04%
Sun Microsystems    15.32%
Oracle Corp.        96.14%
EMC Corp            92.77%
Intel Corp.         67.96%
Texas Instruments   63.78%
Cisco Systems       61.61%
Dell Computer       55.91%
Int'l Bus. Mach.    53.10%
Compaq Computer     50.34%
Microsoft Corp.     39.29%
Motorola  Inc.      36.50%
Hewlett-Packard     30.29%
Lucent Tech.        14.89%

A word of friendly caution: these sectors can really go up in a hurry, and that means they can deflate just as fast -- just look at Yahoo over the last week! This screen is not for those with weak stomachs, and it isn't backtested. It can serve as a nice initial screen for further research, though, or for selecting some "tech" components for an otherwise diversified portfolio.

Have a great week!

Check out the latest file updates for the Workshop:
New Rankings | Workshop Returns


Workshop Portfolio


9/28/01 as of ~5:30:00 PM EDT

Ticker Company Price
Change
Daily Price
% Change
Price
AETAETNA INC NEW0.943.36%28.94
BABOEING CO(1.04)(3.02%)33.36
CATCATERPILLAR INC1.112.53%44.91
COGCABOT OIL & GAS 'A'0.693.59%19.90
DDDU PONT (EI) DE NEMOURS0.992.74%37.14
DGXQUEST DIAGNOSTICS(0.45)(0.73%)61.42
EKEASTMAN KODAK0.421.31%32.49
GMGENERAL MOTORS1.393.38%42.55
LHLABORATORY CORP AMER HLDG(NEW)1.141.42%81.21
MOPHILIP MORRIS COS(0.76)(1.55%)48.24
NEWPNEWPORT CORP0.261.90%13.97
NVRNVR INC(0.54)(0.38%)140.41
PKXPOHANG IRON & STEEL ADS1.097.51%15.61
PVNPROVIDIAN FINANCIAL1.075.64%20.04
QCOMQUALCOMM INC(0.40)(0.84%)47.16
RJRRJ REYNOLDS TOBACCO HLDGS(0.69)(1.19%)57.31
SLESARA LEE CORPUnchg.Unchg.21.09
UNFIUNITED NATURAL FOODS0.563.18%18.15
WMIWASTE MANAGEMENT(0.01)(0.04%)26.74

Overall Return -- total % Gained (Lost)
  Day Week Month Year
To Date
Since
Inception
(12/24/1998)
Workshop1.30%7.32%(12.02%)(20.66%)(18.91%)
Comparable S&P 500n/an/an/an/a(19.07%)
S&P 500 (DA)1.95%7.48%(8.33%)(21.22%)(14.88%)
NASDAQ2.02%4.71%(17.46%)(39.68%)(31.41%)
DJIA (DA)1.68%7.07%(11.07%)(17.86%)(2.22%)

Internal Rate of Return -- Annualized Rate of % Gained (Lost)
  Since Inception (12/24/1998)
Workshop(17.62%)
vs. S&P 500(17.63%)

Trade Date # Shares Ticker Cost/Share Price Total % Ret
1/8/0126MO40.9448.2417.82%
1/8/0122RJR50.1057.3114.39%
1/8/0167UNFI16.4518.1510.34%
12/24/9824CAT43.0844.914.24%
1/8/018NVR136.63140.412.77%
1/8/0140WMI27.4426.74(2.54%)
1/8/0150SLE22.5421.09(6.42%)
1/8/0161PKX17.8315.61(12.46%)
1/8/0115DD48.8337.14(23.95%)
1/8/0129AET38.1728.94(24.19%)
1/8/0139COG28.7519.90(30.79%)
1/8/0114QCOM75.5447.16(37.57%)
1/8/018LH134.6981.21(39.70%)
12/27/9918GM73.2642.55(41.92%)
1/8/0118BA59.5333.36(43.96%)
1/8/019DGX114.4961.42(46.35%)
12/27/9920EK65.0932.49(50.08%)
1/8/0120PVN55.5020.04(63.89%)
1/8/0115NEWP74.9613.97(81.36%)

Trade Date # Shares Ticker Total Cost Current Value Total Gain
1/8/0126MO$1,064.50$1,254.24$189.74
1/8/0122RJR$1,102.25$1,260.82$158.57
1/8/0167UNFI$1,102.12$1,216.05$113.93
12/24/9824CAT$1,034.00$1,077.84$43.84
1/8/018NVR$1,093.00$1,123.28$30.28
1/8/0140WMI$1,097.50$1,069.60($27.90)
1/8/0150SLE$1,126.88$1,054.50($72.38)
1/8/0161PKX$1,087.75$952.21($135.54)
1/8/0115DD$732.50$557.10($175.40)
1/8/0129AET$1,107.00$839.26($267.74)
1/8/0139COG$1,121.37$776.10($345.28)
1/8/0114QCOM$1,057.62$660.24($397.39)
1/8/018LH$1,077.50$649.68($427.82)
1/8/0118BA$1,071.50$600.48($471.02)
1/8/019DGX$1,030.44$552.78($477.66)
12/27/9918GM$1,318.62$765.90($552.73)
12/27/9920EK$1,301.75$649.80($651.95)
1/8/0120PVN$1,110.00$400.80($709.20)
1/8/0115NEWP$1,124.37$209.55($914.83)
 
Cash: 
Total: 
$10.80
$15,681.03
 

Key
• S&P 500 (DA) = dividend adjusted. Dividends have been added to the total return of the index.
• DJIA (DA) = dividend adjusted. Dividends have been added to the total return of the DJIA.

Note
Note: The Workshop Portfolio was launched on December 24, 1998, with $4,000 which was invested in the Foolish Four strategy. Approximately $15,000 was added on January 8, 2001, to support five additional mechanical strategies. At that time approximately $1000 was transfered out of the Foolish Four strategy to bring the Foolish Four into balance with the other strategies. (That's why the Foolish Four's overall return is not consistent with stock values.) Such rebalancing will take place each year among the strategies so that each will start out with approximately the same value at the begining of the year. No more cash additions are planned. The first four tables above show the overall performance of the portfolio. Below that we also track the performance of each component strategy. All transactions are announced publicly before being made, and returns are compared daily to the S&P 500 and the Dow. (Dividends are included in the yearly, historic and annualized returns.) Stocks are chosen using strategies developed by the Workshop community.