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Stocks Ideas for Research

We are beginning research on EMC Corp. This is a large cap tech stock which is on Value Line's list of Timely Stocks -- stocks expected to have the best price performance over the next 12 months. EMC Corp. designs and markets storage products and provides related services for mainframe and mid range compter systems by IBM and Unisys. The Internet explosion is creating new opportunities for this company, since every time someone hits the "send" key it creates a document that must be stored. EMC has been one of the biggest stocks of the decade because of the growth in data storage. The question now is whether this growth will continue. We're considering the purchase of 200-250 shares.

EMC Corporation 171 South Street, Hopkinton, MA 01748 508-435-1000. President and CEO Michael C. Ruettgers.


Investment Philosophy

Our investment philosophy is similar to that of the Motley Fools: we are searching for good companies that we will hold for several years, at an attractive price. We want to see annual growth of at least 50% on our investments, no matter whether the market is "good" or "bad." We are primarily conservative growth stock investor, in the market for the next 5 to 10 years. However, we also try to choose companies we believe will perform above average for the next 12 months. To that end, in our research we use Value Line: also Standard and Poors, Hoovers, and several internet sites (Motley Fool, Silicon Investor, The Street.com.) We (We do include some stocks in our model portfolio with annual growth rates around 30 percent: these are stocks which we consider to be exceptionally safe, but fast growing, blue chip stocks. Such stocks are included to help lower the beta (volatility) of our portfolios. Since we invest for growth, we often hold technology stocks which we believe will be long term winners, but which can exhibit more than usual volatility during market corrections. Please note: nothing written here is to be used as a recommendation to buy or sell a particular security. This is a page where we will post research ideas. The investor (as always) is responsible for doing his or her own due diligence on a security or on any investment idea.


Portfolio

Portfolio - prices as of 5p 2/19/99

This portfolio was begun with $50,000 in November 1996. Return to date: 92.47%. We are aiming for an average return of 50% per year over the next 5 years. The stock market (the Dow) on average returns about 11.5 percent per year, so this is an ambitious portfolio goal for the conservative investor.


The following lists: Symbol, # Shares, Cost, Today's closing price and change, $ amount held, % increase over last 12 months, total increase since stock purchase.(*stock purchase date follows list.)

AOL 90 90.25 153 9/16 +9/16  .73% $13,820.62 $5,698.12 +70.15% +106.81%* 

CMGI 50 102 99 1/2 +1 9/16 +1.60% $4,975.00 -$125.00 -2.45% -19.82%

CPQ 200 27.875 40 1/2 -1/2 -1.22% $8,100.00 $2,525.00 +45.29% +66.64%

CSCO 67.5 32 95 9/16 +7/16 +0.46% $6,450.47 $4,290.47 +198.63% +128.98% 

DELL 20 43. 83 +1 7/16 +1.76% $1,660.00 $800.00 +93.02% +145.72% 

GE 100 50.50 101 1/8 +1 13/16 +1.83% $10,112.50 $5,062.50 +100.25% +35.56% 

INTC 100 59.93 129 3/8 +4 3/4 +3.81% $12,937.50 $6,944.50 +115.88% +40.10% 

LU 64 24.61 100 1/8 +3 7/8 +4.03% $6,408.00 $4,832.96 +306.85% +29.17% 

MDT 200 33.75 73 3/4 -1 1/4 -1.67% $14,750.00 $8,000.00 +118.52% +40.85% 

MSFT 100 37.40 147 -3 -2.00% $14,700.00 $10,960.00 +293.05% +83.23% 

PEP 50 40.812 37 11/16 +1/8 +0.33% $1,884.38 -$156.23 -7.66% -10.32% 

SGP 100 43.315 53 9/16 -3/4 -1.38% $5,356.25 $1,024.75 +23.66% +33.68% 

TLAB 50 54.93 74 15/16 +1 7/16 +1.96% $3,746.88 $1,000.38 +36.42% +25.45% 

WFMI 20 40.125 33 -1/2 -1.49% $660.00 -$142.50 -17.76% -13.76% 


Totals:  Stock value (as of 2/18/99, 5p) $105,561.59  Gain: +92.47%
profit: $50,714.95

AOL purchased 50 shares 5/27/98 for split adjusted $42. 40 Shares purchased 11/98 for $120

CMGI purchased 50 shares  split adjusted price $102

CPQ purchased 5/27/98 at $27.87

DELL purchased 5/27/98 for split adjusted $43 per share.

GE purchased 11/15/96 for split adjusted $50 per share.

INTC purchased 11/15/96 for split adjusted $59 per share.

LU purchased 8/27/93 (as AT&T) for split adjusted $24.60 per share.

MDT purchased 200 shares 11/15/96 for split adjusted $33 per share.

MSFT purchased 100 shares 11/15/96 for split adjusted $37 per share.

PEP purchased 50 shares 10/6/98 for $40 per share

SGP purchased 50 shares 5/27/98 for split adjusted $43 per share

TLAB purchased 50 shares 10/6/97 for $54 per share

WFMI purchased 20 shares 10/24/97 for $40 per share

Began portfolio 11/96 with approximately $50,000. Average return above 50% per year.