WHERE ARE THEY NOW? FOUR OF FIVE FAMILIES' CHOICES BEATING MARKET PROS.Byline: Deborah Adamson Daily News Staff Writer Ain't it sweet to beat the pros. Midway into the latest Daily News stock-picking contest, four of the five contestants are outperforming the average all-stock mutual fund manager and Standard & Poor's 500, the benchmark index of the U.S. stock market. They're also beating the Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , Nasdaq Composite The Nasdaq Composite is a stock market index of all of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market, meaning that it has over 3,000 components. It is highly followed in the U.S. and the Daily News/Bloomberg Index with returns ranging from 15 percent to 20 percent in three months. The results are all the more astounding a·stound tr.v. a·stound·ed, a·stound·ing, a·stounds To astonish and bewilder. See Synonyms at surprise. [From Middle English astoned, past participle of astonen, since the top two contestants hadn't even bought individual stocks on their own before the contest began. Yet they are whipping WHIPPING, punishment. The infliction of stripes. 2. This mode of punishment, which is still practiced in some of the states, is a relict of barbarism; it has yielded in most of the middle and northern states to the penitentiary system. the nation's major indexes, whose returns over the same period were 11.68 percent for the Dow, 12.79 percent for Nasdaq, 10.67 percent for the S&P 500 and 14.38 percent for the Daily News index of local firms. The professionals? Not even close. The average equity fund manager had a return of 11 percent during that same time, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Lipper Analytical, a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of mutual-fund rating service. ``It was definitely a surprise,'' said Ralph Curtis, whose family has held the contest's top spot almost every week since the contest began. In February, the Daily News gave five families a fictitious Based upon a fabrication or pretense. A fictitious name is an assumed name that differs from an individual's actual name. A fictitious action is a lawsuit brought not for the adjudication of an actual controversy between the parties but merely for the purpose of $100,000 portfolio to invest in the stock market. They are allowed to hold up to 10 stocks and can trade daily, but at a $50 fee for each trade. Cash dividends aren't counted in the grand total. The families have mainly invested in blue-chip companies Blue-chip company Used in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. Gilt-edged security. , the most popular being Microsoft, Lucent Technologies and America Online See AOL. . From the start, the Curtis family of Northridge has been at the top. The family's portfolio consists of companies familiar to the Curtises: Ralph Curtis, a computer consultant, chose computer firms; wife Rosie preferred consumer products firms such as Procter & Gamble; and toy and food stocks were favorites of the children, Tori and Justine. ``They were mostly things we believe in and use ourselves,'' Curtis said. Their best stock is Dell, purchased for about $52. It's now trading in the $91 range. Their worst choice is BAT International, a speculative micro-cap headquartered in Burbank. They bought it in two blocks for 71 cents and 98 cents, but it's now trading in the 68-cent range. The family has learned plenty about trading stocks and will likely invest with real money after the contest ends, but Ralph Curtis admits to some jitters jitters 'Butterflies' Psychology An episode of nervousness or anxiety that often precedes a public event; jitters is a type of performance anxiety which may affect actors in a stage production–stage fright or soloist musicians; it may respond to anxiolytics . ``My wife's pushing for it, but I'm a little hesitant. A lot of it is luck,'' he said, comparing the exercise to throwing darts darts Indoor target game. It is played by throwing feathered darts at a circular board with numbered spaces. The board, usually made of cork, bristle, or elmwood, is divided into 20 sectors valued at points from 1 to 20. . For the Salomon family of Calabasas, now in second place, their status in the contest isn't as crucial as knowing how to choose good companies. ``Moving up and down in ranking is not as important as our portfolio having gone up in value and that we picked good stocks,'' said Michael Salomon, a business owner. Be that as it may, ``we're still outperforming the Dow and doing better than most mutual funds.'' He and wife Penny teach their children, Amanda, Scott and Alexandra, the meaning of stock ownership and show them how news affects a stock's price. The Salomons' best stock has been Coast Federal, with 200 shares purchased at $44. When the thrift was acquired by H.F. Ahmanson, shareholders received Ahmanson stock and warrants. The Salomons' stake amounted to 161.64 common shares with a purchase price of almost $61, plus 200 warrants that didn't cost them anything. They sold Ahmanson for $77 and the warrants for $16. Their worst stock? Philip Morris, bought at $42 and now down to $38. In third place is the Jones family of Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. . Starting out last, Fred and Fran Jones inched up by getting rid of slow-moving stocks such as Amgen and loading up on pharmaceuticals and Lucent. ``Gosh, it has been so exciting,'' said Fran Jones, whose own investments have always been handled by professionals. ``It really makes me feel good about `myself because I've become much more knowledgeable.'' Since the contest began, the Joneses have started reaching for the business section first when the newspaper arrives. They've also been watching business shows, learning how to follow the running ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. at the bottom of the screen. ``We really have gotten hooked on that,'' she said. ``We're mesmerized by it.'' The family's best stock is Lucent, purchased in three blocks at $44, $52 and $69. Lucent recently closed at around $73 a share. The worst has been Intel, which the couple bought at $83 and sold at $78. The contest made them realize the stock market isn't beyond their understanding. Rather, ``we can do this on our own,'' Fran Jones said. The Padilla family of Van Nuys is in fourth place. They started with only three stocks - Allied Signal, Compaq and Microsoft - until Compaq started dropping and the family had to diversify. ``I wasn't going to wait around for Compaq to recover,'' said Joe Padilla. ``I had to come back from the negative.'' One shortcoming short·com·ing n. A deficiency; a flaw. shortcoming Noun a fault or weakness Noun 1. of the contest is the lack of real-time trading, he said. The Daily News contest bases all trades on closing prices for the day an order is placed. ``It's kind of frustrating frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: . To make money, you need to be able to get in and out'' quickly, said Padilla, who trades for wife Sari and kids Kyle and Kristina. The Padillas have been the most frequent traders, with a total of 25 transactions. Their best stock is Dell, bought at $63 and now hovering hov·er intr.v. hov·ered, hov·er·ing, hov·ers 1. To remain floating, suspended, or fluttering in the air: gulls hovering over the waves. 2. around $91. The worst pick has been Compaq; 1,041 out of 1,641 shares purchased at around $30 were sold for $25 and $26 a share. The rest were sold for a profit. Rounding out the five is the Brunell family of Chatsworth. Henry and Natalie Brunell started out in second place, but were hammered by a few choices such as Sunbeam and Compaq. ``I'm disappointed. I'm still in the dumps DUMPS a lethal inherited disorder of Holstein cattle that causes infertility. The name is an acronym of Deficiency of Uridine MonoPhosphate S ,'' Natalie Brunell said. Their best stock was BankAmerica, purchased at about $71 and sold at $91. The couple's w`orst stock was Sunbeam, bought at $51 and sold at $30. However, the contest has piqued the interest of her husband, who had been the less enthusiastic of the two about investing. ``Before the contest, I hardly looked at the business section,'' he said. ``Now the first thing I look at is the business section.'' Added his wife: ``Henry is more adventurous. This is giving him an opportunity to try new things out. This has been wonderful for him.'' DAILY NEWS STOCK PICKING CONTEST THE GAME: Five families are managing fictitious portfolios that stood at $100,000 on Feb. 2. Contestants can buy and sell daily, but each transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). $50. The portfolios are limited to stocks traded on the nation's major exchanges. THE PAYOFF: Whomever whom·ev·er pron. The objective case of whoever. See Usage Note at who. whomever pron the objective form of whoever: has the largest portfolio on July 31 stands tallest. FIRST PLACE NAME: The Curtis Family STOCK PORTFOLIO: BAT International 8,062 shares; Dell 190 shares; Dole 308 shares; Electronic Arts 188 shares; Galoob 615 shares; Gateway 257 shares; Health Care Centers of America 54,852 shares; McDonald's 210 shares; Microsoft 289 shares; Procter & Gamble 185 shares TRANSACTIONS LAST WEEK: Sold 1,333 shares of Chatcom at 17/32, sold 25 shares of Electronic Arts at 47 1/4, bought 54,852 shares of Health Care Centers of America at 4 cents VALUE THIS MORNING: $120,802.18 ($120,802.15 stocks, $0.03 cash) VALUE MAY 1: $123,813.27 ($123,358.56 stocks, $454.71 cash) SECOND PLACE NAME: The Salomon Family STOCK PORTFOLIO: Columbia Capital 836 shares; Costco 200 shares; Disney 100 shares; General Electric 200 shares; Global Telemedia 10,000 shares; Limited 300 shares; Philip Morris 300 shares; Sears, Roebuck 317 shares; Tootsie toot·sie n. Slang 1. Toots. 2. A girl or young woman. 3. or toot·sy A person's foot. [Origin unknown. Roll 206 shares, Xerox 150 shares TRANSACTIONS LAST WEEK: None VALUE THIS MORNING: $120,533.37 ($120,533.13 stocks, $0.24 cash) VALUE ON MAY 1: $118,449.76 ($118,449.52 stocks, $0.24 cash) THIRD PLACE NAME: The Jones Family STOCK PORTFOLIO: Cisco 100 shares; Dell 125 shares; Entremed 147 shares; Lucent 491 shares; Microsoft 261 shares; Pfizer 247 share`s; Tekelec 203 shares TRANSACTIONS LAST WEEK: Sold 75 shares of Eli Lilly Eli Lilly can refer to:
VALUE THIS MORNING: $119,792.19 ($119,771.44 stocks, $20.75 cash) VALUE ON MAY 1: $121,093.94 ($121,072.38 stocks, $21.56 cash) FOURTH PLACE NAME: The Padilla Family STOCK PORTFOLIO: AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. 185 shares; AirTouch 107 shares; Dell 200 shares; Lucent 281 shares; Merck 97 shares; Microsoft 195 shares; Nokia 147 shares; Qualcomm 171 shares; Excite 100 shares TRANSACTIONS LAST WEEK: Sold 282 shares of Star Telecommunications at 28 3/8, sold 77 shares of Microsoft at 87 3/4, bought 109 shares of Lucent at 72 5/8, bought 100 shares of Excite at 66 3/4 VALUE THIS MORNING: $115,265.28 ($115,256.31 stocks, $8.97 cash) VALUE ON MAY 1: $113,687.10 ($113,645.50 stocks, $41.60 cash) FIFTH PLACE NAME: The Brunell Family STOCK PORTFOLIO: AirTouch 199 shares; Caterpillar caterpillar (kăt`əpĭl'ər, kăt`ər–), common name for the larva of a moth or butterfly. Caterpillars have distinct heads and are segmented and wormlike. 166 shares; Chevron 100 shares; Ericsson 200 shares; General Electric 125 shares; Harrah's 182 shares; Intel 214 shares; Lucent 238 shares; Petsmart 603 shares; Qualcomm 135 TRANSACTIONS LAST WEEK: None VALUE THIS MORNING: $103,526.94 ($103,493.88 stocks, $33.06 cash) VALUE ON MAY 1: $104,730.56 ($104,697.50 stocks, $33.06 cash) CAPTION(S): 6 Photos, Box, 6 Charts PHOTO (1--Color) no caption (Group shot of the five families in the Daily News Stock Picking Contest) David Crane David Crane may refer to:
(2) The Curtis Family (3) The Salomon Family (4) The Jones Family (5) The Padilla Family (6) The Brunell Family BOX: DAILY NEWS STOCK PICKING CONTEST (see text) CHART: (1--6) HOW THE FIVE FAMILIES STACK UP |
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