GIS Stocks: GW - 1995 Performance (SCS)

GIS WORLD STOCK WATCH

What A Year For Stocks!

As stock markets go, this year will go down as the best in a couple decades. The Dow Jones Average smashed two 1000-point barriers at 4000 and 5000. Overall market performances, depending upon the stock index used, increased from 19.29 percent TO 39.92 percent (see table). Why was ‘95 so good? There was strong corporate earnings growth, lower interest rates, moderate inflation and more money flowing into equities. The market in 1994 was flat, which helped make it more poised for a rally, and, as stocks increase, unlike other commodities, it seems to stimulate demand to drive prices higher. Will ‘95 repeat itself? Doubtful. Unfortunately, an old axiom is that all extremes are eventually corrected.

Comparative Index Returns
The table below depicts the relative performance of the GIS Index to major U.S. indexes. As shown for the year, the index managed to post a 42.1 percent increase, several percent higher than either the Standard & Poors 500 or the Dow Jones Industrial Average, and a better return than any of the major indexes. The index betters its return of 32.05 percent for 1994 and posts a total two-year increase of a whopping 87.44 percent.

The other indexes shown below haven’t been presented in previous "Stock Watch" columns, but some may be familiar to you, especially the three major exchanges. These include composite indexes for the American (AMEX), New York and NASDAQ exchanges. Additionally, broader based indexes are included that are developed from private companies; the Wilshire 5000, the Russell 2000 and the Value Line. Other than the GIS WORLD index, the best performing index for 1995 was the NASDAQ, with the worst being Value Line. The closing amounts of all indexes for 1995 are near their all time highs. But the highs and lows for the previous year showed a wide trading range, however. For 1996, many experts anticipate a sideways market, somewhat similar to 1994, but starting and ending higher, and not as robust as 1995. We’ll know exactly what happens this time next year.

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SOURCES: MarketGuide Inc. and Schott Consulting Services NOTE: Information on Eagle Point not yet available from MarketGuide Inc.
*Actual fiscal-year end is in January 1996, and most recent quarterly report is for July; ** According to Zack Earnings Estimates
NA = Not Available; NM=Not Meaningful
	1994					1995					1994-1995
INDEX	Open	Close	% Change	Low	High	Open	Close	% Change	Low	High	% Change
STANDARD & POORS 500	466.45	459.27	-1.54	438.92	482.00	459.27	615.93	34.11	459.11	621.69	32.05
DOW JONES INDUSTRIAL AVG.	3754.09	3834.44	2.14	3593.35	3978.36	3834.44	5117.12	33.45	3832.08	5216.47	36.31
NASDAQ COMPOSITE	776.82	751.96	-3.20	693.79	803.93	751.96	1052.13	39.92	743.58	1069.79	35.44
NYSE COMPOSITE	259.08	250.94	-3.14	243.14	267.71	250.94	329.51	31.31	250.73	331.17	27.18
AMEX INDEX	477.15	433.67	-9.11	420.23	487.89	433.67	548.23	26.42	433.12	553.58	14.90
RUSSELL 2000	258.58	250.36	-3.18	235.16	271.08	250.36	315.97	26.21	246.56	316.12	22.19
WILSHIRE 5000	4657.83	4540.62	-2.52	4373.58	4804.31	4540.62	6057.21	33.40	4529.05	6084.51	30.04
VALUE LINE - G	295.28	277.52	-6.01	266.56	305.87	277.52	331.04	19.29	276.67	334.83	12.11
BUSINESS GEOGRAPHICS INDEX	100	132.58	32.58	99.60	132.58	129.56	174.67	34.82	129.44	197.53	74.67
GIS WORLD INDEX	100.00	132.05	32.05	100.00	132.05	131.88	187.44	42.13	131.88	207.86	87.44

Recent Stock Performance and News
The big performer to close 1995 with a bang was Analytical Surveys Inc., Colorado Springs, Colo., with a December gain of 34 percent. That month the company announced the acquisition of Intelligraphics, Inc., a private company based in Waukesha, Wis., for $3.49 million in cash and 230,000 shares of restricted stock (see "Analytical Surveys Acquires Intelligraphics," page 12). Intelligraphics is a data conversion company. The acquisition could boost Analytical Surveys’ total revenue by more than 50 percent. It increased its stock price by some 15 percent the day it was announced.

Autodesk Inc., San Rafael, Calif., announced a stock buyback program that seemed to buoy its stock, as well as, a "fair treatment" program, which will increase nonacquiring stockholder shares in the event of a company takeover. MapInfo Corp., Troy, N.Y., again announced disappointing earnings, with break-even earnings for the next quarter compared to $0.15 a year ago. This news clobbered its stock just after Jan. 1, 1996, to force it to a new all-time low under $14; however, this price isn’t included in the current index.

For the last month of 1995, the index was up 3 percent vs. 2 percent for the Standard & Poors 500. Besides Analytical Surveys, Landmark Graphics Corp., Houston, Texas, also showed a double-digit gain, with a 16 percent increase.

GIS WORLD Inc., March, 1996; pp 94.
(This article was reproduced with permission from GIS WORLD Inc.)

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