To: freeus who wrote (66564 ) 2/12/2000 1:41:00 PM From: Bandit19 Respond to of 152472
Lynn, Hi. Here's the IBD article less the list of stocks. Date :02/11/2000 Author :Christina Wise Investor's Business Daily Title :Shop Where The Best Mutual Funds Buy It takes big money to move markets, and institutional investors have the cash. But how do you find out where the smart money is going? Each Friday, Investor's Business Daily runs a host of tables detailing the stock holdings and recent trades of the top-rated mutual funds in its Mutual Funds & Personal Finance section. The "New Buys Of Top-Rated Funds" table, which runs the second Friday of every month, is a good place to start (see page B2). The table is limited to purchases of mutual funds rated A- or higher, so it includes the top 15% of all funds based on three-year price performance. The companies are sorted according to their combined Relative Price Strength and Earnings Per Share Ratings. That puts stocks with the best earnings growth and price performance - key factors that influence future performance - at the top of the list. In addition, the table notes the number of top-rated funds that bought the stock in the latest reporting period. Make sure the stock you have your eye on is owned by at least one top-rated fund. If the stock has passed muster with leading portfolio managers and analysts, it's a good confirmation its business is in order. Plus, mutual funds pack plenty of buying power, which will drive the stock higher. The chart can help you zero in on potential winners. Use it as a watch list of companies you like. You'll be ready when a quality stock starts its next leg up. The Oct. 15 top-buy list reads like a who's who of current market leaders. When the market turned less than two weeks later, stocks such as JDS Uniphase, Qualcomm and chipmaker PMC-Sierra led the charge. The top 15 names all had Relative Price Strength and Earnings Per Share Ratings of 95 or higher - signs of stellar companies. They would go on to rise an average of 114% through Thursday.Zomax, which topped the list, was up more than 34%, a relative laggard. Software developer Clarify logged the biggest gains, rising 258%, while chipmaker Applied Micro Circuits came in second at 248%. Knowing when to buy is just half of the equation. The "New Sells Of Top-Rated Mutual Funds" table, which runs the third Friday of every month, can give you early signals that the quality funds are unloading a stock. For example, the top 10 stocks listed on the sells table on Oct. 22 sat out the end-of-the-year market run-up. By Dec. 31, they had gained a measly 3% on average. By the end of January, they had lost 12% on average. Like its buy-oriented sibling, the sells table looks at funds rated A- or higher. However, it does not factor in Relative Price Strength or Earnings Per Share Ratings. Then it tallies the number of funds buying or selling a particular stock in the latest reporting period. Finally, it ranks the firms according to the highest number of top-rated funds selling a stock. If a stock you own pops up on the list, it may be time to re-evaluate your position. And if a name you're considering buying appears, give it a closer look. Some of the selling might be normal profit taking, but large moves out of a stock can signal problems.