The Rule Breaker -- Information on Raytheon

Raytheon Company

Buy Stats:

On December 19, 1997, the Fool Portfolio received 17.8556 shares of Raytheon Company (RTN.A) from GM (NYSE: GM), or 0.06377 per share of GM held. The fractional shares are given in cash, so we received 17 shares and added $45.52 to the Foolish cash account. The conversion was done at a Raytheon price of $53.21 per share. Raytheon will be sold with the Foolish Four switch in February of 1998, or earlier if possible for no charge.

ACTION    #  STOCK  PRICE/SHARE  COMS'N 
Received  17 RTN.A  $53.21      N/A     

Sell Stats:

On February 20, 1998, the Fool Port went through its fourth historic Foolish Four switch, which it does every eighteen months. Previous Fool Four stocks that were sold in this switch were Chevron (NYSE: CHV), General Motors (NYSE: GM), and 3M (NYSE: MMM). Raytheon (NYSE: RTN.A), a GM spin-off, was also sold.

The new Foolish Four stocks bought to be held until August of 1999 were DuPont (NYSE: DD), Exxon (NYSE: XON), and International Paper (NYSE: IP). Our previous Fool Four stocks served us fairly well, though they trailed the strong market. Let's hope that our new guys outperform! If history is any indicator, they will.

The complete numbers for the sells and buys follow. Fool on.

Foolish Four Sells:

ACTION  # STOCK  PRICE    COMS'N PROCEEDS   GAIN     
Sold  125   CHV  $77 13/16 $18   $9,708.56 $3,422.95
Sold  280    GM  $65 11/16 $18  $18,374.50 $4,726.58   
Sold  110   MMM  $87       $18   $9,552.00 $2,327.56
Sold   17 RTN.A  $53 7/8   $18     $897.88    ($6.69)

Gains on transactions*:

 CHV since 8/11/95: 54.45%
    S&P 500 since 8/11/95: 85.1%
  GM since 8/12/96: 34.63%
    S&P 500 since 8/12/96: 55.3%
 MMM since 8/12/96: 32.22%
(*Performance numbers do not include
  reinvested dividends.)

Foolish Four Buys:

ACTION   #   STOCK  PRICE    COMS'N  TOTAL COST 
Bought  215     DD  $59 3/4  $18.00  $12,864.25    
Bought  200    XON  $64      $18.00  $12,818.00
Bought  270     IP  $47 5/8  $18.00  $12,876.75