Chapter 16
Small Investors Take Heart

I hope all you beginning investors are still with me. I'm one of you and want to show you that this system works for you and to prove it to you using real world data.

In this chapter I charted our ten semi-aggressive stocks starting with $1,000 in stock and $500 in cash. Also, I included commission costs. Look at the spreadsheet and see how it is set up. I strongly recommend you include commissions on your spreadsheet.

Let me explain how you figure the commissions into your spreadsheet. It's simple. You merely subtract all commissions from your cash balance. For example: beginning cash $500 + market sell $200 - commission $ 24 = $676 + $ 3 interest = next months' cash of $679.

Here's another little trick to help increase your profits. I want you to buy and sell the full amount the system says. So you have to add enough to your buy and sells to cover commissions. For example: you want to start with $1,000 worth of stock and $500 in cash. So you go back to chapter 1 and find out Blueprint charges a commission of $39.50 + $ 3.85 transaction fee. I included the transaction fee for the opening buys. I also included the $ 3.85 fee in all commissions since you have to pay it. Thus, to start with a stock include the commission. So to buy $1,000 worth of stock after you have opened your Blueprint account, you'd call Blueprint and tell them to sell $1,043 worth of Ready Assets and buy stock A. That should give you $1,000 worth of stock.

For additional buys and sells under the system, you do the same thing. You add the amount of the commission to your buy and sell. This is what I did in the spreadsheets in this book. I always bought the full amount the system said and paid the commissions from the cash balance.

For example: look at the Jan 86 buy for Alaska Airlines. The system tells you to buy $248 worth of stock. You check out the commission schedule and find that Blueprint charges 5% + $ 10 on trades between $200 and $500. So you add your buy amount of $248 + commission of $ 26 and tell Blueprint to buy you $274 worth of stock. This will ensure you receive $248 worth of stock. Blueprint will automatically subtract out their commissions and buy you 100% of the stock the system told you to buy. My examples do this because the commission is deducted from cash.

For sells it will be very difficult to sell exactly 100% of the stock the system tells you. As you remember from chapter 2, you tell Blueprint to sell a certain number of shares when you have a sell under the system. Here is what I propose you do: figure out what the commission is going to be and add enough shares to sell to roughly cover the commission. For example: (I did not do this in the examples in this chapter for simplicity sake) look again at Alaska Airlines. On Jan 85 the system told you to sell 8 shares but wait - the commission to sell $119 worth of stock is $ 17. So you look and see Alaska Airlines is currently selling at $14.62 a share. So to cover the commission tell Blueprint to sell 9 shares. Again Blueprint will automatically deduct the commission but you have to sell an extra share to cover the commission. Again I strongly urge you to have your cash in a money market account with your broker.

After you sell any shares of stock, tell Blueprint to invest your sale proceeds into your Ready Asset account. I'm not sure if Blueprint will automatically do that if you have a Ready Asset account - they probably do but it won't hurt to remind them. If you don't have a money market account with your broker, then the broker will send you a check for the sale proceeds. You need to stick those proceeds into your savings account to wait for future purchases. You're much better off having your cash with your broker.

Now look at the summary sheets a few pages ahead and you'll see that as a small investor you are doing very well. Your ten stock portfolio was up 15% after one year, up 48% after two years, up 110% after three years, and up 527% after seven years. You're averaging about 75% simple interest after paying commissions and had no years with losses. After the fourth year we sold five stocks and bought five new ones. After the fifth year we sold the remaining five original stocks and bought new ones. On the next page I give a summary of why I sold the five stocks. After you use the system a while, you'll know when to sell your stocks.

After a while you will understand the stock market and know when you should dump one of your stocks which will lead to even bigger profits.

At the end of four years I evaluated my portfolio - remember I told you you're not married to your stocks. I would recommend you evaluate your stocks regularly. I have changed my thinking over the years and feel this is the best advice on when to sell all remaining shares of a stock. Say you bought a stock and the low was $ 5 and the high was $ 15 and you paid $ 6 a share. Play the system until the price of the stock goes near the previous high and then sell all remaining shares rather than the number the system says. Take the proceeds from the sale of the remaining shares and buy another stock you like that is currently at or new its 52-week low. If you love the stock you just sold, don't despair, it will soon go back to its 52-week again and you can buy it again when another one of your stocks hits its high and it's time again to sell all remaining shares. Remember you're always trying to improve your portfolio and some stocks need to be retired. It's easy - sell those stocks and buy new ones.

I hope from reading this chapter you see I'm not rigidly telling you to hold all ten stocks for four years and then sell five of them. I'm giving you a philosophy to follow and illustrating it with examples and showing you the happy results.

So I've looked through my portfolio and decided to sell five of the ten stocks I now own. I'll try to give you brief reasons why I decided to sell. Check the summary to see percent gains for the first four years.

Graco - Graco did well for us the first three years, up 10% after one year, 63% after two, and 97% after three years. But in the fourth year it's down 4%. The stock is plateauing. A check of the fourth year price range shows a low of $ 20.12 and a high of $ 33.37, only a 50% difference. We started with a portfolio total of $3,040 after three years and wound up at $2,978 - not very good and the price shows a steady decline. Maybe it will bounce up but I can find better stocks at their lows now also. Also the stock is a little too high priced - I'd rather have a stock under $ 10 and go for more profits.

Hovnanian Enterprises - Stock took a big nosedive in fourth year - total profit declined from 137% to 122%. Also, the company has a heavy debt load that could be weighing it down. I think I can do better with another stock my fifth year.

Continental Info Sys - Had to add $1,500 to buy more stock in fourth year. I've been reading rumors about the company - something seriously wrong could happen - maybe bankruptcy. Let me sell now and buy later if they are going into bankruptcy, then the stock will be cheap. Good time to exit.

J P Industries - Another loser in fourth year - profits down from 77% to 38%. Stock doesn't seem promising, time to sell.

Prospector - A bad choice from the start - had only one good year (third year went from 0% to 60%). Gold mutual funds just don't seem to fluctuate enough to make money under the system - probably take a nuclear war to make gold really go up in value and who wants that - time to sell.

So I sell my five stocks. I sell my five stocks and divide the total into five new stocks. My total after commissions comes to $13,950 which lets me start five new stocks at $2,790 each. After the fifth year I sell the remaining five original stocks for $27,985 which gives me $5,597 to start five new ones in the sixth year.

After the fourth year I picked five new stocks quite quickly. I picked the Nov. 88 issue of Barron's and looked for stocks selling near their 52-week low. It's not hard to pick stocks that work well with the system. You're always trying to maximize your profits and the best way is to keep up with the latest stock info so you can have replacements lined up when you need them.

As you can see from the summary sheets, you're ahead 527% after seven years or 75% a year simple interest a year AFTER commissions. Your profits will only go higher because commissions will be smaller percentages as your portfolio goes higher. You will get better and better at picking stocks. Enjoy the future - you earned it!

Remember like in the last chapter - increase portfolio control 100% of the buy amount when you buy additional shares with the cash over 1/3 of portfolio value for the same reasons listed in the prior chapter.

Now a brief explanation of the stock summary and cash in one account sheets. The percentage for each year is based on the percent of gain each year regardless of stock. Thus each year's portfolio total is divided by $1,543, the starting amount for each stock.

On the cash-in-one-account sheets, I kept a running total for each cash balance - for example: if one stock had "borrowed" $2,000 and then had a cash balance of $ 500, I showed the cash total as - $1,500. Also if I sold a stock and it had a negative cash balance, I carried that balance forward with the new stock. For example: Claire's Stores had a starting cash balance in Nov. 88 of $930 but on the cash summary sheets shows as $917 in Nov. 88 because Prospector finished with a - $ 13 cash balance when I sold it. All Claire's cash balances have $ 13 subtracted from them. You cannot compare the cash summary sheets to the actual cash balance sheets in most cases.

The cash summary is merely to show the actual cash balances as poor stocks "borrow" from rich ones. You can see from a review of the cash in one account spreadsheet that your cash balance only went negative for one month, Feb. 88 and only went negative $ 52. Your balance fluctuated widely for several reasons: One reason is that you were adjusting your cash/stock ratio every year. Also the stock market had downturns and upturns that tended to make most stocks go up or down in large amounts. But isn't this just what we want? YES it is! This caused large sell or buy orders that affected both your cash and stock value.

The large fluctuations are perfectly normal to the system. Don't view your cash total like a savings account or certificate of deposit. The only reason for your cash account is to provide money when it's time to buy cheap stock. A review of the seven-year summary will show you that cash did the job very well. Look what your $15,430 has grown to after seven years - $96,814, a 527% increase. The system is doing exactly what you want it to do.

Small Investors Take Heart - 1st - 3rd Years

STOCK/FUND	% GAIN	PORT.		% GAIN	PORT.		% GAIN	PORT.
	1ST	VALUE		2ND	VALUE		3RD	VALUE
	YEAR			YEAR			YEAR
ALASKA AIRLINES	45%	2230		36%	2097		55%	2395
GRACO	10%	1691		63%	2520		97%	3040
COMPAQ COMPUTER	53%	2362		131%	3567		421%	8042
HOVNANIAN ENT	22%	1877		59%	2448		137%	3651
SUPERIOR IND	17%	1812		41%	2180		55%	2388
CONTINENTAL INFO	8%	1667		42%	2184		55%	2386
J P INDUSTRIES	-23%	1195		48%	2287		112%	3276
GOLDEN NUGGET	9%	1683		15%	1770		30%	1999
TOTALS	15%	17682		48%	22769		94%	29904

Small Investors Take Heart - 4th - 6th Years

STOCK/FUND	% GAIN	PORT.		% GAIN	PORT.		% GAIN	PORT.
	4TH	VALUE		5TH	VALUE		6TH	VALUE
	YEAR			YEAR			YEAR
ALASKA AIRLINES	136%	3648		176%	4255
GRACO	10%	1691
COMPAQ COMPUTER	374%	7308		596%	10732
HOVNANIAN ENT	122%	3433
SUPERIOR IND	173%	4220		219%	4921
CONTINENTAL INFO	88%	2898
J P INDUSTRIES	38%	2134
BUSH INDUSTRIES	165%	4095		202%	4660
GOLDEN NUGGET	34%	2069		122%	3419
PROSPECTOR	38%	2126
CAESAR'S WORLD				130%	3550		157%	3964
ON-LINE				132%	3574		118%	3369
ASHTON-TATE							194%	4539
QMS				151%	3868		162%	4036
CLAIRE'S STORES				214%	4851		196%	4572
DELL COMPUTER							426%	8122
SUN MICROSYSTEMS							388%	7530
AMD				84%	2834		87%	2885
BEST BUY							257%	5510
WANG B							193%	4522
TOTALS	118%	33500		202%	46543		218%	49049

Small Investors Take Heart

STOCK/FUND	% GAIN	PORT.		% GAIN	PORT.		% GAIN	PORT.
	7TH	VALUE		8TH	VALUE		9TH	VALUE
	YEAR			YEAR			YEAR
CAESAR'S WORLD	436%	8270
ON-LINE	418%	7998
ASHTON-TATE	661%	11745
QMS	335%	6706
CLAIRE'S STORES	220%	4939
DELL COMPUTER	1043%	17635
SUN MICROSYSTEMS	568%	10304
AMD	316%	6426
BEST BUY	933%	15945
WANG B	344%	6846
TOTALS	527%	96814

Cash in one account

DATE	ALASKA	GRACO	COMPAQ	HOVNAN	SUP	CONT	J P	BUSH	GOLDEN	PROS	TOTAL
	AIR		COMP	ENTER	IND	INFO	IND	IND	NUGGET		CASH
	DELL	CAESARS	SUN		ASHTON			BEST		CLAIRES
	COMP	WORLD	MICRO	ONLINE	TATE	QMS	AMD	BUY	WANG B	STORES
11/87	575	974	2667	1025	960	1001	935	1152	602	822	10713
12/87	(159)	674	1625	456	511	451	560	388	605	705	5816
1/88	(551)	424	39	(513)	151	(146)	152	(324)	608	709	549
2/88	(550)	426	39	(763)	(72)	(142)	153	(321)	611	567	(52)
3/88	-	-	-	-	-	-	-	-	-	-	-
4/88	(548)	430	39	(375)	968)	(134)	155	(315)	617	219	20
5/88	(547)	784	39	(372)	40	(130)	340	908	620	(23)	1659
6/88	(262)	788	39	(369)	949	(126)	342	660	834	(21)	2834
7/88	(260)	792	39	(366)	792	(122)	344	668	838	(19)	2706
8/88	(258)	796	1124	(363)	798	(118)	346	253	842	(17)	3403
9/88	(256)	800	1130	(360)	804	(956)	348	(430)	846	(15)	1911
10/88	(254)	804	1136	(906)	920	(1267)	350	(753)	666	(13)	683
11/88	19	930	1142	24	927	(337)	930	(1413)	669	917	3808
12/88	23	869	1148	29	934	(398)	869	(1571)	672	856	3431
1/89	-	-	-	-	-	-	-	-	-	-	-
2/89	31	877	1160	(26)	948	(390)	877	(1891)	678	864	3128
3/89	247	1154	2189	(170)	1213	(100)	881	(1891)	882	1421	5826
4/89	511	1160	2200	(166)	1327	(94)	885	(1891)	886	1564	6382
5/89	517	1166	2211	(162)	1336	(88)	889	(1754)	890	1572	6577
6/89	822	1313	2583	33	1345	(82)	893	(1753)	1136	1748	8038
7/89	830	1594	4375	38	1566	(76)	1010	(1177)	1394	2203	10927
8/89	838	1602	4397	43	1576	(70)	1015	(1085)	1401	2214	11931
9/89	846	1610	4419	48	1586	182	1020	(954)	1545	2225	12527
10/89	981	1618	4441	53	1596	189	1025	(949)	1788	2711	13453
11/89	1864	1188	1864	263	1864	27	1030	915	1864	1602	12481
12/89	1787	939	1787	355	1787	33	808	838	1787	1554	11675
1/90	-	-	-	-	-	-	-	-	-	-	-
2/90	1805	949	1805	458	1805	47	816	856	1805	1570	11916
3/90	1814	561	2065	810	1814	348	589	865	927	1578	11371
4/90	2155	105	3241	819	2249	564	592	1123	932	1586	13366
5/90	2994	(189)	3257	828	2394	573	595	1954	1385	1594	15385
6/90	3806	(674)	3637	848	2406	813	598	1969	1392	1905	16700
7/90	-	-	-	-	-	-	-	-	-	-	-
8/90	4630	(670)	4516	866	2430	1290	942	2115	1406	2726	20251
9/90	4887	(1720)	4539	545	2064	1303	335	2130	1026	2740	17849
10/90	4911	(2699)	4562	91	1007	931	(139)	1582	1031	2606	13883

Cash in one account

DATE	DELL	CAESAR'S	SUN	ONLINE	ASHTON	QMS	AMD	BEST	WANG B	CLAIRES	TOTAL
	COMP	WORLD	MICRO		TATE			BUY		STORES	CASH
11/90	2719	(2697)	2523	750	(683)	84	(511)	764	257	1518	4724
12/90	2674	(2695)	953	35	(681)	60	(887)	4	(797)	1506	172
1/91	4103	(2693)	958	(185)	(101)	67	91198)	9	(993)	1262	1229
2/91	6043	(2691)	963	80	(823)	171	(1194)	(516)	(1823)	762	972
3/91	9014	(2689)	2917	767	(822)	1026	(168)	294	(1822)	870	9387
4/91	9586	(2000)	3984	1229	(454)	1037	132	595	(1821)	1823	14111
5/91	10148	(1712)	4004	1623	190	1643	1101	761	246	1832	19836
6/91	9590	(1074)	4955	1636	331	1810	1668	2978	97	1841	23832
7/91	9638	(545)	4980	1649	1039	1825	2070	4583	107	1850	27196
8/91	9686	(533)	4544	1978	1454	1840	2090	6792	117	1859	29827
9/91	10564	(179)	4567	1992	4119	1856	2110	6831	(177)	1868	33551
10/91	11177	219	4590	-	5760	1872	2131	7514	(782)	1038	33519

Alaska Airlines

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
11/84		11.82	1000	100	543	-	85	1000	-	-	-	43	1543
12/84		13.00	1105	110	503	-	85	1000	(105)	0	3	-	1608
1/85		14.62	1243	124	506	(8)	85	1000	(243)	(119)	3	17	1749
2/85		17.87	1376	137	611	(13)	77	1000	(376)	(239)	3	26	1987
3/85		19.50	1248	124	828	(6)	64	1000	(248)	(124)	4	17	2076
4/85		19.62	1138	113	940	-	58	1000	(138)	IGN (25)	5	-	2078
5/85		-	-	-	-	-	-	-	-	-	5	-	-
6/85		24.50	1421	142	950	(11)	58	1000	(421)	(279)	5	28	2371
7/85		23.25	1093	109	1207	-	47	1000	(93)	0	6	-	2300
8/85		25.25	1187	118	1213	-	47	1000	(187)	IGN (69)	6	-	2400
9/85		21.25	999	99	1219	-	47	1000	1	0	6	-	2218
10/85		21.37	1005	100	1225	-	47	1000	(5)	0	6	-	2230
11/85	ADJ S/C	20.12	1409	140	740	+23 SH	70	1489	80	0	4	38	2149
12/85		19.25	1348	134	744	-	70	1489	141	IGN 7	4	-	2092
1/86		16.12	1129	112	748	15	70	1489	360	248	4	26	1877
2/86		17.37	1477	147	476	-	85	1613	136	0	2	-	1953
3/86		19.87	1689	168	478	-	85	1613	(76)	0	2	-	2167
4/86		20.00	1700	170	480	-	85	1613	(87)	0	2	-	2180
5/86		18.62	1583	158	482	-	85	1613	30	0	2	-	2065
6/86		19.25	1636	163	484	-	85	1613	(25)	0	2	-	2120
7/86		16.00	1360	136	486	8	85	1613	253	117	2	17	1846
8/86		16.00	1488	148	354	7	93	1740	252	104	2	17	1842
9/86		17.00	1700	170	234	-	100	1792	92	0	1	-	1934
10/86		18.62	1862	186	235	-	100	1792	(70)	0	1	-	2097
11/86	ADJ S/C	20.37	2037	203	236	-	100	1792	(245)	IGN (42)	1	-	2273
12/86		18.75	1875	187	237	-	100	1792	(83)	0	1	-	2112
1/87		22.75	2275	227	238	(11)	100	1792	(483)	(256)	1	27	2513
2/87		23.87	2125	212	469	(5)	89	1792	(333)	(121)	2	17	2594
3/87		30.75	2583	258	576	(17)	84	1792	(791)	(533)	3	39	3159
4/87		25.25	1692	169	1075	-	67	1792	100	0	5	-	2767
5/87		20.12	1348	134	1080	15	67	1792	444	310	5	29	2428
6/87		19.75	1620	162	745	8	82	1947	327	165	4	20	2365
7/87		20.00	1800	180	563	-	90	2030	230	IGN 50	3	-	2363
8/87		23.50	2115	211	566	-	90	2030	(85)	0	3	-	2681
9/87		21.00	1935	193	569	-	90	2030	95	0	3	-	2504
10/87		20.25	1823	182	572	-	90	2030	207	IGN 25	3	-	2395

Alaska Airlines

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
11/87	S/C +$200	13.50	1215	121	775	51	90	2030	815	694	3	42	1990
12/87	+$400	13.00	1833	183	439	28	141	2377	544	361	0	32	2272
1/88		13.50	2282	228	46	-	169	2558	276	IGN 48	0	-	2328
2/88		15.25	2577	257	46	-	169	2558	(19)	0	0	-	2623
3/88		-	-	-	-	-	-	-	-	0	0	-	-
4/88		16.87	2852	285	46	-	169	2558	(294)	IGN (9)	0	-	2898
5/88		18.87	3190	319	46	(17)	169	2558	(632)	(313)	0	30	3236
6/88		17.75	2698	269	331	-	152	2558	(140)	0	2	-	3029
7/88		19.37	2945	294	333	-	152	2558	(387)	IGN (93)	2	-	3278
8/88		17.87	2717	271	335	-	152	2558	(159)	0	2	-	3052
9/88		17.25	2622	262	337	-	152	2558	(64)	0	2	-	2959
10/88		20.87	3173	317	339	(14)	152	2558	(615)	(298)	2	29	3512
11/88	ADJ S/C	21.12	2915	291	611	-	138	2558	(357)	IGN (66)	3	-	3526
12/88		19.62	2708	270	614	-	138	2558	(150)	0	3	-	3322
1/89		-	-	-	-	-	-	-	-	-	3	-	-
2/89		22.50	3105	310	620	(11)	138	2558	(547)	(237)	3	26	3725
3/89		24.87	3159	315	835	(11)	127	2558	(601)	(286)	4	28	3994
4/89		25.12	2915	291	1098	-	116	2558	(357)	IGN (66)	5	-	4013
5/89		27.62	3205	320	1103	(12)	116	2558	(647)	(327)	5	30	4308
6/89		27.12	2821	282	1407	-	104	2558	(263)	0	7	-	4228
7/89		27.25	2834	283	1414	-	104	2558	(276)	0	7	-	4248
8/89		27.00	2808	280	1421	-	104	2558	(250)	0	7	-	4229
9/89		28.87	3003	300	1428	(5)	104	2558	(445)	(145)	7	18	4431
10/89	SOLD ALL	26.00	2574	257	1560	-	99	2558	(16)	0	8	-	4134

Graco

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
10/84		13.62	1000	100	543	-	73	1000	-	-	-	43	1543
11/84		12.75	931	93	503	-	73	1000	69	0	3	-	1434
12/84		-	-	-	-	-	-	-	-	-	3	-	-
1/85		10.50	767	76	509	15	73	1000	233	157	3	19	1276
2/85		13.50	1188	118	335	-	88	1079	(109)	0	2	-	1523
3/85		12.75	1122	112	337	-	88	1079	(43)	0	2	-	1459
4/85		11.00	968	96	339	-	88	1079	111	IGN 15	2	-	1307
5/85		-	-	-	-	-	-	-	-	-	2	-	-
6/85		13.25	1166	116	343	-	88	1079	(87)	0	2	-	1509
7/85		13.00	1144	114	345	-	88	1079	(65)	0	2	-	1489
8/85		14.50	1276	127	347	-	88	1079	(197)	IGN (50)	2	-	1623
9/85		15.25	1342	132	349	(8)	88	1079	(263)	(129)	2	17	1691
10/85	ADJ S/C	15.25	1220	122	463	-	80	1079	(141)	IGN (10)	2	-	1683
11/85		18.25	1460	146	465	(13)	80	1079	(381)	(235)	2	26	1925
12/85		17.37	1164	116	677	-	67	1079	(85)	0	3	-	1841
1/86		20.75	1390	139	680	(8)	67	1079	(311)	(172)	3	21	2070
2/86		19.50	1151	115	835	-	59	1079	(72)	0	4	-	1986
3/86		28.25	1667	166	839	(15)	59	1079	(588)	(422)	4	35	2506
4/86		29.00	1276	127	1232	-	44	1079	(197)	IGN (50)	6	-	2508
5/86		28.75	1265	126	1238	-	44	1079	(186)	IGN (60)	6	-	2503
6/86		30.00	1320	132	1244	(4)	44	1079	(241)	(109)	6	17	2564
7/86		28.50	1140	114	1343	-	40	1079	(61)	0	7	-	2483
8/86		21.25	850	85	1350	7	40	1079	229	144	7	19	2200
9/86		24.75	1163	116	1357	-	47	1151	(12)	0	7	-	2520
10/86	ADJ S/C	24.37	1658	165	836	+21 SH	68	1676	18	0	4	39	2494
11/86		25.12	1709	170	801	-	68	1676	(33)	0	4	-	2510
12/86		23.87	1624	162	805	-	68	1676	52	0	4	-	2429
1/87		25.25	1717	171	809	-	68	1676	(41)	0	4	-	2526
2/87		29.75	2023	202	813	(5)	68	1676	(347)	(145)	4	19	2836
3/87		30.62	1929	192	944	-	63	1676	(253)	IGN (61)	5	-	2873
4/87		33.37	2103	210	949	(7)	63	1676	(427)	(217)	5	25	3052
5/87		31.62	1771	177	1147	-	56	1676	(95)	0	6	-	2918
6/87		29.62	1659	165	1153	-	56	1676	(17)	0	6	-	2812
7/87		30.37	1701	170	1159	-	56	1676	(25)	0	6	-	2860
8/87		32.25	1806	180	1165	-	56	1676	(180)	0	6	-	2971
9/87		33.37	1869	186	1171	-	56	1676	(193)	IGN (7)	6	-	3040

Graco

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
10/87	ADJ S/C	34.37	2131	213	987	+6 SH	62	1870	(261)	IGN (48)	10	23	3118
11/87		23.75	1473	147	974	11	62	1870	397	250	10	26	2447
12/87		22.00	1606	160	674	10	73	1995	389	229	4	25	2280
1/88		22.75	1888	188	424	-	83	2110	222	IGN 34	2	-	2312
2/88		23.75	1971	197	426	-	83	2110	139	0	2	-	2397
3/88		-	-	-	-	-	-	-	-	-	2	-	-
4/88		33.37	2770	277	430	(11)	83	2110	(660)	(383)	2	33	3200
5/88		32.37	2331	233	784	-	72	2110	(221)	0	4	-	3115
6/88		31.75	2286	228	788	-	72	2110	(176)	0	4	-	3074
7/88		32.62	2349	234	792	-	72	2110	(239)	IGN (5)	4	-	3141
8/88	3 FOR 2 SP	22.25	2403	240	796	-	108	2110	(293)	IGN (53)	4	-	3199
9/88		21.25	2295	229	800	-	108	2110	(195)	0	4	-	3095
10/88	SOLD ALL	20.12	2174	217	804	-	108	2110	(64)	0	4	-	2978

Compaq Computers

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
11/84		4.62	1000	100	543	-	216	1000	-	-	-	43	1543
12/84		5.37	1161	116	503	-	216	1000	(161)	IGN (45)	3	-	1664
1/85		6.62	1431	143	506	(43)	216	1000	(431)	(288)	3	28	1937
2/85		8.12	1406	140	770	(33)	173	1000	9406)	(266)	4	27	2176
3/85		10.00	1400	140	1014	(26)	140	1000	(400)	(260)	5	27	2414
4/85		8.12	926	92	1253	-	114	1000	74	0	6	-	2179
5/85		-	-	-	-	-	-	-	-	-	6	-	-
6/85		8.25	941	94	1265	-	114	1000	59	0	6	-	2206
7/85		9.87	1126	112	1271	-	114	1000	(126)	0	6	-	2397
8/85		11.12	1268	126	1277	(13)	114	1000	(268)	(142	6	18	2545
9/85		11.37	1149	114	1408	-	101	1000	(149)	IGN (35)	7	-	2557
10/85		9.37	947	94	1415	-	101	1000	53	0	7	-	2362
11/85	ADJ S/C	10.62	1796	179	783	+68 SH	169	1636	(160)	0	4	41	2579
12/85		12.37	2091	209	746	-	169	1636	(455)	(246)	4	26	2837
1/86		13.87	2345	234	971	(34)	169	1636	(709)	(475)	5	38	3316
2/86		12.75	1721	172	1415	-	135	1636	(85)	0	7	-	3136
3/86		15.50	2093	209	1422	(16)	135	1636	(457)	(248)	7	26	3515
4/86		14.37	1711	171	1652	-	119	1636	(75)	0	8	-	3363
5/86		17.00	2023	202	1660	(11)	119	1636	(387)	(185)	8	23	3683
6/86		17.25	1863	186	1831	-	108	1636	(227)	IGN (41)	9	-	3694
7/86		14.50	1566	156	1840	-	108	1636	70	0	9	-	3406
8/86		12.00	1296	129	1849	18	108	1636	340	211	9	24	3145
9/86		15.25	1922	192	1622	-	126	1742	(180)	0	8	-	3544
10/86		15.37	1937	193	1630	-	126	1742	(195)	IGN (2)	8	-	3567
11/86	ADJ S/C	15.50	2403	240	1183	+29 SH	155	2195	(208)	0	6	37	3586
12/86		19.00	2945	294	1152	(24)	155	2195	(750)	(456)	6	37	4097
1/87		19.37	2538	253	1579	-	131	2195	(343)	IGN (90)	8	-	4117
2/87		23.25	3046	304	1587	(23)	131	2195	(851)	(547)	8	40	4633
3/87		32.12	3470	347	2104	(29)	108	2195	(1275)	(928)	10	45	5574
4/87		28.12	2222	222	3002	-	79	2195	(27)	0	15	-	5224
5/87		35.50	2805	280	3017	(9)	79	2195	(610)	(330)	15	30	5822
6/87		48.37	3386	338	3334	(18)	70	2195	(1191)	(853)	17	44	6720
7/87		46.25	2405	240	4164	-	52	2195	(210)	0	21	-	6569
8/87		45.62	2373	237	4185	-	52	2195	(178)	0	21	-	6558
9/87		57.25	2977	297	4206	(8)	52	2195	(782)	(485)	21	38	7183
10/87		76.50	3366	336	4676	(11)	44	2195	(1171)	(835)	23	44	8042

Compaq Computers

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
11/87	ADJ S/C	52.87	3701	370	2667	+37/18	70	5008	1307	937	13	113	6368
12/87		40.75	3586	358	1625	38	88	5477	1891	1533	8	53	5211
1/88		55.37	6977	697	39	-	126	6244	(772)	IGN (75)	0	-	7016
2/88		47.37	5969	596	39	-	126	6244	275	0	0	-	6008
3/88		-	-	-	-	-	-	-	-	-	0	-	-
4/88		50.25	6332	633	39	-	126	6244	(88)	0	0	-	6371
5/88		51.40	6476	647	39	-	126	6244	(232)	0	0	-	6515
6/88		54.00	6804	680	39	-	126	6244	(560)	0	0	-	6843
7/88		65.00	8190	819	39	(17)	126	6244	(1946)	(1127)	0	48	8229
8/88		58.75	6404	640	1124	-	109	6244	(160)	0	6	-	7528
9/88		54.12	5900	590	1130	-	109	6244	344	0	6	-	7030
10/88		56.62	6172	617	1136	-	109	6244	72	0	6	-	7308
11/88	ADJ S/C	53.12	5791	579	1142	-	109	6244	453	0	6	-	6933
12/88		57.12	6227	622	1148	-	109	6244	17	0	6	-	7375
1/89		-	-	-	-	-	-	-	-	-	6	-	-
2/89		74.50	8121	812	1160	(14)	109	6244	(1877)	(1065)	6	47	9281
3/89		66.87	6353	635	2189	-	95	6244	(109)	0	11	-	8542
4/89		71.75	6816	681	2200	-	95	6244	(572)	0	11	-	9016
5/89		77.62	7374	737	2211	(5)	95	6244	(1130)	(393)	11	34	9585
6/89		99.62	8966	896	2583	(18)	90	6244	(2722)	(1826)	13	56	11549
7/89		91.25	6570	657	4375	-	72	6244	(326)	0	22	-	10945
8/89		94.87	6831	683	4397	-	72	6244	(587)	0	22	-	11228
9/89		90.75	6534	653	4419	-	72	6244	(290)	0	22	-	10953
10/89	SOLD ALL	87.37	6291	629	4441	-	72	6244	(47)	0	22	-	10732

Hovnanian Enterprises

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
10/84		11.25	1000	100	543	-	89	1000	-	-	-	43	1543
11/84		12.87	1146	114	503	-	89	1000	(146)	IGN (32)	3	-	1649
12/84		-	-	-	-	-	-	-	-	-	3	-	-
1/85		13.00	1157	115	509	-	89	1000	(157)	IGN (42)	3	-	1666
2/85		16.62	1480	148	512	(20)	89	1000	(480)	(332)	3	30	1992
3/85		16.75	1156	115	818	-	69	1000	(156)	IGN (41)	4	-	1974
4/85		15.25	1052	105	822	-	69	1000	(52)	0	4	-	1874
5/85		-	-	-	-	-	-	-	-	-	4	-	-
6/85		16.12	1113	111	830	-	69	1000	(113)	0	4	-	1943
7/85		13.75	949	94	834	-	69	1000	51	0	4	-	1783
8/85		14.00	966	96	838	-	69	1000	34	0	4	-	1804
9/85		15.00	1035	103	842	-	69	1000	(35)	0	4	-	1877
10/85	ADJ S/C	14.00	1176	117	622	+15 SH	84	1223	47	0	3	-	1798
11/85		15.12	1271	127	625	-	84	1223	(48)	0	3	-	1896
12/85		16.50	1386	138	628	-	84	1223	(163)	IGN (25)	3	-	2014
1/86		16.25	1365	136	631	-	84	1223	(142)	0	3	-	1996
2/86		20.25	1701	170	634	(15)	84	1223	(478)	(308)	3	29	2335
3/86		28.00	1932	193	918	(18)	69	1223	(709)	(516)	5	39	2850
4/86		24.75	1262	126	1402	-	51	1223	(39)	0	7	-	2664
5/86		26.37	1345	134	1409	-	51	1223	(122)	0	7	-	2754
6/86		30.25	1543	154	1416	(5)	51	1223	(320)	(166)	7	21	2959
7/86		30.12	1386	138	1569	-	46	1223	(163)	0	8	-	2955
8/86		29.75	1369	136	1577	-	49	1223	(146)	0	8	-	2946
9/86		18.75	863	86	1585	15	46	1223	360	274	8	28	2448
10/86	ADJ S/C	16.12	1387	138	812	+25/19	86	1835	448	310	4	37/29	2199
11/86		17.62	1851	185	438	-	105	1990	139	0	2	-	2289
12/86		19.00	1995	199	440	-	105	1990	(5)	0	2	-	2435
1/87		18.62	1956	195	442	-	105	1990	34	0	2	-	2398
2/87		20.87	2192	219	444	-	105	1990	(202)	0	2	-	2636
3/87		25.25	2651	265	446	(16)	105	1990	(661)	(396)	2	34	3097
4/87		33.50	2982	298	812	(21)	89	1990	(992)	(694)	4	42	3794
5/87	2 FOR 1 SP	16.50	2244	224	1471	-	136	1990	(254)	IGN (30)	7	-	3715
6/87		15.00	2040	204	1478	-	136	1990	(50)	0	7	-	3518
7/87		15.25	2074	207	1485	-	136	1990	(84)	0	7	-	3559
8/87		17.37	2363	236	1492	(8)	136	1990	(373)	(137)	7	18	3855
9/87		15.87	2032	203	1619	-	128	1990	(42)	0	8	-	3651

Hovnanian Enterprises

DATE	REMARKS	SHARE	SHARE	SAFE	CASH	SHARES	SHARES	PORT	BUY	MKT ORD	6%	COMM	PORT
		PRICE	VALUE			BOUGHT	OWNED	CONT	(SELL)	(SELL)	INT		VALUE
						(SOLD)			ADVICE	BUY
10/87	ADJ S/C	13.37	2060	206	1211	+26/10	154	2404	344	138	6	35/18	3271
11/87		10.37	1702	170	1075	58	164	2473	771	601	5	37	2727
12/87	+ $1000	7.37	1637	163	1389	132	222	2774	1137	974	2	42	3413
1/88		7.75	2744	274	375	31	354	3261	517	243	2	24	3119
2/88		11.00	4335	433	109	(39)	385	3383	(852)	(429)	1	31	4344
3/88		-	-	-	-	-	-	-	-	-	3	-	-
4/88		10.00	3460	346	513	-	346	3383	(77)	0	3	-	3773
5/88		9.62	3330	333	516	-	346	3383	53	0	3	-	3846
6/88		8.62	2984	298	519	12	346	3383	399	101	3	17	3503
7/88		9.75	3312	331	420	-	358	3434	122	0	2	-	3732
8/88		8.75	3133	313	422	-	358	3434	301	0	2	-	3555
9/88	+ $200	7.50	2685	268	640	64	358	3434	249	481	2	34	3309
10/88	SOLD ALL	7.87	3323	332	110	-	422	3675	352	IGN 20	1	-	3433