GoodMornig Sig. SOme new from IBD and AOL.
<<DELL A BIG HOLDING
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Janus Twenty's major holdings include top performing big cap computer stocks like DELL COMPUTER, CISCO SYSTEMS and MICROSOFT. Its Internet play is AMERICA ONLINE. The fund's key plays in health care are PFIZER and WARNER-LAMBERT.
Dell soared 186% to 60 from 21, and has since risen to 66. The PC maker is racking up strong earnings and taking market share from its competitors.
PBHG Large Cap 20, with $308 million in assets, is even more concentrated than Janus Twenty. PBHG holds no more than 20 big-cap stocks. It goes with firms with strong earnings. The fund has operated for just two years. Last year, it turned in a total return of 33%, in line with the S&P.
The fund is heavily weighted in computers. It holds COMPUWARE, American Online, BMC SOFTWARE and EMC. Telecom is a big play too. It owns LUCENT TECHNOLOGIES and MCI WORLDCOM.
Large-cap Idex Growth has among its top holdings Dell, MICROSOFT, PFIZER, Warner-Lambert, GENERAL ELECTRIC, America Online and ELI LILLY.
Marsico Focus limits its selections to 20 or 30 of the best growth stocks it can find. It's done well with Dell, Pfizer, Warner-Lambert and TIME-WARNER.>>
more
<<Right now, the major averages are in uptrends on a daily basis.
Leading stocks like Dell Computer, Yahoo, Eli Lilly and Compuware rallied back to prior bases and broke out to the upside.
The market environment, despite the herky-jerky action of the Dow, is favorable for bulls. The sell-off of July and August seems to be over. Investors now need to think more positively.
The Dow made its confirmation turn Sept. 8. That's when it rose 380 points. It pulled back the next two days, but rallied again. Since then, the Dow has set up a pattern of higher highs and higher lows. Charts of the S&P 500 and Nasdaq composite paint the same picture.
The key piece in the market puzzle is finding the right stocks to play. That's why spotting the leaders is so important.
sell them dogs and free up some cash for the leaders
Leading stocks are those whose price performance is the best. They have a Relative Strength rating in the 90s from IBD. That means during the past 12 months they outperformed 90% of all stocks.
A good place to find them is by checking IBD's new high list. Another is by following the charts of ''Stocks In The News'' for the NYSE, Nasdaq and American Stock Exchange markets.
Investors shouldn't confuse ''big company stocks'' for the ''leading stocks.'' Just because a company is the largest in its industry does not make it a leading stock.
Compaq Computer is the largest maker of microcomputers with sales of $25 billion. It trades on the NYSE. However, it is not the leading stock in the group. Dell, with sales of $15.2 billion and traded on the Nasdaq, is the leader.
As if us DELLHEAD didn't know this already
Why? Because Dell has a Relative Strength of 99, the highest possible. Compaq's RS is a respectable 89, but less than Dell's. The nod goes to Dell.
Leading stocks are important to spot and watch. They're the first to recover from a market sell-off and move to hit new highs. They give the best clue to the market's health. And they're the best for bullish investors to play.
If one has been Listening this is what I have been saying
The chart pattern of the Dow Jones industrial average gives the look of a market still struggling. It has not been able to get back to its prior basing area in the 8800 to 9400 area. It's around 8000. The same can be said of the other major averages.
However, Dell, a leader, rallied back quickly from its sell-off. It got back to its base in the 50 to 59 area. Wednesday it broke out and on Thursday made a new high, getting to 66. The stock's action says aggressive investors are going with Dell.
The strong technical action in Dell is supported by its fundamentals.
Dell has a 99 Earnings Per Share rating, the highest possible. Earnings growth the past two quarters accelerated from 54% to 57% to 67%. Results exceeded Street consensus estimates the past three quarters. Dell's sales are growing better than 50%. It's also gaining market share. >>
Greg-----> 80 by November |
