Drip Portfolio Report
Thursday, May 7, 1998
by Dale Wettlaufer (DaleW@fool.com)


Alexandria, VA (May 7, 1998) -- More numbers coming at you today. But before we get to that, I want to expand on what Vince said yesterday. Here's a quick description of another way to account for contributions and withdrawls from your account.

When you start with, say, $1000, issue 100 shares. The shares will have a net asset value. Anytime you add money in the future, your shares outstanding will have to increase by the same exact proportion as the capital you add to the account (including the transaction cost in the capital contribution), and vice-versa when you withdraw money. Say at the middle of the year, the account's total value has risen to $1,200. With 100 shares outstanding, your Net Asset Value will be $12.00 per share. If you add $600, you've increase the account value by 50% so you need to increase shares outstanding by 50%. You now have an account worth $1,800 with a 150 shares outstanding. $1,800/150 shares = $12.00 per share. Now back to the banks...

The third entrant in the running is State Street Corp. (NYSE: STT), a commercial bank in name but really an asset management and securities administration powerhourse. This will be a fun one to look at in more depth. Here are the numbers:

($ in 000,000)

Price/Valuation

Share Price.....$68 15/16
Market Cap.....$11,312.71
Price/Book.....5.45
Price/Tangible Book.....5.87
BVPS.....$12.66
Price/Assets.....29.00%
Price/Net Loans.....202.34%
Price/Deposits.....47.95%
Price/Tangible Assets.....29.11%
EV/Tangible Assets.....29.11%
Price/Revenues.....4.49

P/E.....28.28
Amortization-Adjusted P/E.....27.78
Discount/Premium to Group.....42.9%
EPS.....$2.44
Cash EPS.....$2.48
Diluted Sharecount.....164.10
1998 EPS Estimate.....$2.70
1999 EPS Estimate.....$3.10
Multiple on 1998 Est......25.53
Multiple on 1999 Est......22.24
Amort-Adjusted Multiple on 1999.....21.93
Discount/Premium to Group.....45.1%

Capital Productivity/Efficiency

Asset Turnover2.....6.95%
Asset Turnover.....6.93%
ROE2.....21.35%
ROE.....20.97%
Amortization Adjusted ROE.....22.63%
ROA.....1.12%
ROA2.....1.125%
Net margin2.....16.17%
Net Margin.....15.89%
Efficiency Ratio.....71.87%
Interest Income/AEA.....5.70%
Interest Expense/AEA.....3.28%
Net Interest Margin.....2.42%
Net Share Buybacks (Including preferred).....$94.0
Dividends on Common.....$69.0
Retention Rate.....83.06%
Payout Ratio on AAEarnings.....16.94%
Owners' Yield.....1.44%

Balance Sheet

Cash & Nonearning Assets.....$11,171.0
Cash & Nonearning Last Year.....$9,910.0
Long Term Debt.....$774.0
Shareholder's Equity.....$2,077.0
Last Year Equity.....$1,738.0
Total Assets.....$39,010.0
Last Year Assets.....$33,631.0
Total Liabilities.....$36,933.0
Goodwill.....$149.8
Last Year's Goodwill.....$66.8
Gross Loans.....$5,680.0
Loan Loss Reserves.....$89.00
Loan Loss Reserves %.....1.57%

Leverage

Equity/Tangible Assets.....5.34%
Average Equity/Average Assets.....5.25%
Average Equity/Average Assets (Tangible).....2.31%
Assets/Equity.....19.04
Avg. Assets/Avg. Equity (Tangible).....43.34
Loans to Deposits.....24.07%
LT Debt/Equity.....37.27%
Leveraged Capital Ratio.....7.22%
Tier 1 Capital Ratio.....7.72%
Total Risk Based Capital Ratio.....11.66%

Income Statement

Revenues.....$2,518.00 Interest Income (TTM).....$1,943.00
Interest Expense (TTM).....$1,187.0
Net Interest Income.....$756.0
Provision for Loan Losses.....$10.00
Noninterest Income (TTM).....$1,762.0
Noninterest Expense (TTM).....$1,817.00
Net Income for Common (TTM).....$400.00
Amortization Adjusted Earnings.....$407.22
Noninterest income/interest income.....90.7%
Noninterest income/revenues.....69.98%
Noninterest income/NII.....233.07%
Amort. Adjusted Net/Revs......16.17%
Amortization of Goodwill.....$7.22

Credit Quality

Nonperforming Loans.....$2.00
Nonperforming Assets.....$6.00
Charge Offs.....$8.00
Net Charge Offs.....$6.00
Nonperforming Assets Ratio.....0.11%
Reserves/Nonperforming Loans.....1483.33%
Months Charge-Offs in Reserves.....133.5

Deposits

Deposits.....$23,593.0
Noninterest bearing deposits.....$6,887.0
Noninterest deposits/deposits.....29.19%
Deposits/Liabilities.....63.88%

Risk-Based Capital Productivity

ROE2*Tier1.....16.48
Leverage*Turns*Net Margin2.....0.91

FoolWatch -- It's what's going on at the Fool today.


TODAY'S NUMBERS

Stock Close Change CPB $53 11/16 - 1/4 INTC $81 - 3/8 JNJ $69 9/16 + 1/4
Day Month Year History Drip (0.18%) (0.39%) 8.03% (8.00%) S&P 500 (0.88%) (1.49%) 12.85% 15.12% Nasdaq (1.16%) (1.78%) 16.86% 15.14% Last Rec'd Total # Security In At Current 04/13/98 1.000 CPB $53.690 $53.688 04/01/98 9.015 INTC $80.417 $81.000 04/07/98 4.099 JNJ $68.952 $69.563 Last Rec'd Total# Security In At Value Change 04/13/98 1.000 CPB $53.69 $53.69 $0.00 04/01/98 9.015 INTC $724.94 $730.19 $5.25 04/07/98 4.099 JNJ $282.64 $285.14 $2.50 Base: $1500.00 Cash: $386.10** Total: $1455.12

The Drip Portfolio has been divided into 63.266 shares with an average purchase price of $23.710 per share.

The portfolio began with $500 on July 28, 1997, adds $100 on the 1st of every month, and the goal is to have $150,000 in stock by August of the year 2017.

**Transactions in progress:

04/22/98: Sent $30 to buy more INTC.
04/22/98: Sent $70 to buy more JNJ.