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TrackCAPSDogs (< 20)

CAPS Dogs Go Mad in March



March 31, 2012 – Comments (1) | RELATED TICKERS: GE , INTC , KRFT.DL

We've begun tracking how the stocks picked by the article series Dogs of the CAPS performs real-time here on CAPS.

Over the past five years, picking Dow Dogs that conformed to the old Foolish Four strategy and were rated 3-stars or better on CAPS has handily outperformed the FF, the DD, the DJIA, and the S&P 500. 

So how are our Dogs doing? March Madness overtook our CAPS Dogs and now they've started surpassing the indexes. They're beginning to pull away from the Dow, which, while having a great year in its own right, seems to be slowing a little. March CAPS Dogs returns were more than twice those of the Dow.

The S&P 500 is having an even better year than that, and it's up 12% year to date. But our doggies are closing in and in March did better than the index. Those we started tracking in February have started closing the gap however.

Bouyed by the continued strength of both Intel and GE, the Dogs are moving higher, but now even laggard Pfizer and Ma Bell are getting into the act. Of course I'm still concerned about the overall health of the economy.

We're not really witnessing a strong economic rebound, but rather asset inflation caused by the massive intervention of the Federal Reserve in the marketplace. Ultimately I think it will all end badly and worry there's zero political will in Washington to stop the train wreck that's in motion. But hopefully our CAPS Dogs will weather the downturn when it comes better than others.

So with a quarter of the year under our belt, our Dogs are starting to lap up the indexes. Let see if April brings an additional shower of gains this month. 

January Dogs 

General Electric (NYSE: GE): Starting Price: $17.91  -End Price: $20.07 +12.06%
Pfizer (NYSE: PFE): $21.64 - $22.65 +4.67%
Intel (Nasdaq: INTC): $24.25 - $28.12 +15.96%
AT&T (NYSE: T): $30.24 - $31.23 +3.27%
Average Return: +8.99%
DJIA: 12,217.56 - 13,212.04 +8.14%
S&P 500: 1257.60 - 1408.47 +12.00%

Dow Dogs: +5.2%

February Dogs

GE: Starting Price: $18.71 - End Price: $20.07 +7.27%
PFE: $21.40 - $22.65 +5.84%
INTC: $26.42 - $28.12 +6.43%
T: $29.41 - $31.23 +6.19%
Average Return: +6.43%
DJIA: 12,632.91 - 13,212.04 +4.58%
S&P 500: 1312.41 - 1408.47 +7.32%

March Dogs

GE: Start Price: $19.05 - End Price: $20.07 +5.35%
PFE: $21.13 - $22.65 +7.19%
INTC: $26.88 - $28.12 +4.61%
T: $30.59 - $31.23 +2.09

Average Return: +4.81%
DJIA: 12,952.07 - 13,212.04 +2.01%
S&P 500: 1365.68 - 1408.47 +3.13%

Each month I'll update the list of stocks that would be tracked by the strategy and we'll follow them here on this blog each month.

We've had our first lineup change with April's CAPS Dogs. Kraft (NYSE: KFT) has moved up because Chevron (NYSE: CVX) knocked Intel out of the top 10 listing as its yield was greater by 0.02%. But with a price north of $100, it won't come near making our Dogs list.

As Kraft carries a 4-Star CAPS rating, it will move into our list that we'll be following until April 2013.

It shouldn't really matter when an investor starts the strategy, though some have suggested there's a "January effect" that helps the strategy, but we'll be able to prove (or disprove) that by keeping tabs on those stocks that fall off  the list and those that are added.

Here then is April's CAPS Dogs with their new starting prices: 

GE: $19.05 4-Stars
PFE: $21.13 4-Stars
: $30.59 3-Stars
KFT: $38.01 4-Stars

DJIA: 13,212.04
S&P 500: 1408.47

Here's to having a dog in the race!


Rich Duprey owns shares of Intel, Pfizer, and General Electric, but hold no other position in any company mentioned. Click here to see my holdings and a short bio. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel and Pfizer. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. 

1 Comments – Post Your Own

#1) On April 25, 2012 at 7:46 AM, TrackCAPSDogs (< 20) wrote:

Correction: I just noticed the starting prices for the April Dogs is incorrect (other than KFT, that is). The correct starting prices should be as follows, and will be what we use to track them going forward:

GE: $20.07
PFE: $22.65
T: $28.12
KFT: $38.01


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