TO THE SHAREHOLDERS
For the third quarter ended September 30, 1995, Scout Stock Fund's total
return (price change and reinvested distributions) was 2.44% compared to the
unmanaged Standard & Poor's 500 index of larger companies which earned 7.95%
for the same period. For calendar year to date, Scout Stock Fund earned
16.09% versus the S&P 500's return of 29.77%.
At September 30, the Fund's average annual compounded total returns for one,
five and ten years were 15.67%, 13.46% and 12.02%, respectively. Performance
data contained in this report is for past periods only. Past performance is
not predictive of future performance. Investment return and share value will
fluctuate, and redemption value may be more or less than original cost.
Fund performance for the third quarter lagged in comparison with the first
half of the year as the Fund was positioned more conservatively in a market
which is overvalued by most historic standards. Despite the market's rapid
advance in the first six months of 1995, momentum continued to be fueled by
new money flowing into mutual funds and other security investments. Large
capitalization stocks overall remained extremely expensive, and sectors such
as technology have had a strong drive in the market this year.
With this in mind, Scout Stock Fund has reduced its position in the
technology sector and rotated into the utility and the consumer sectors.
We feel this, in addition to our large cash position, should protect the Fund
against a possible severe market correction in this over valued market and
provide reserves for better stock buying opportunities as they become
available.
Top 10 Equity Holdings
Market Percent
Value of Total
AT&T Corp. $ 1,709,500 1.71%
Dun & Bradstreet Corp. 1,620,500 1.62%
Weyerhaeuser Co. 1,596,875 1.60%
Entergy Corp. 1,567,500 1.57%
Pacific Telesis Group 1,537,500 1.54%
ALZA Corp. 1,495,000 1.50%
Grainger (W.W.), Inc. 1,449,000 1.45%
Snap-On, Inc. 1,444,000 1.45%
SCANA Corp. 1,440,000 1.44%
Stride Rite Corp. 1,421,875 1.42%
Top 10 Equity Holdings Total: $ 15,281,750 15.30%
Note: All market values based on 9/30/95 statement of assets.
Throughout third quarter, Scout Stock Fund took profits by liquidating over
valued stocks such as Chubb Corp. (insurance), Monsanto Co. (chemicals),
Upjohn Co. and Eli Lilly & Co. (pharmaceuticals). In this unstable market,
we feel it is important that we adhere to our value-oriented investment
style and continue to seek investments in only low-volatility stocks that
meet Scout Stock Fund's investment standards. As better stock buying
opportunities become available, Scout Stock will deploy its cash reserves.
We appreciate your continued interest in Scout Stock Fund as part of your
overall financial plan.
Sincerely,
Larry D. Armel
President
Shares of the Scout Funds are not deposits or obligations of, nor guaranteed
by, UMB Bank, n.a. or any other banking institution, nor are they federally
insured by the Federal Deposit Insurance Corporation or any other
federal agency. These shares involve investment risks, including the possible
loss of the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1995
Market
Shares Company Value
COMMON STOCKS _ 67.95%
BASIC MATERIALS _ 6.37%
68,000 Brush Wellman, Inc. $ 1,258,000
5,000 Carpenter Technology Corp. 195,625
30,000 Cyprus Amax Minerals Co. 843,750
4,000 duPont (E.I.) deNemours & Co. 275,000
7,500 Ecolab, Inc. 207,188
30,000 Engelhard Corp. 761,250
10,000 International Paper Co. 420,000
40,000 Nalco Chemical Co. 1,365,000
22,000 Rohm & Haas Co. 1,328,250
35,000 Weyerhaeuser Co. 1,596,875
60,000 Worthington Industries, Inc. 1,102,500
9,353,438
CAPITAL GOODS _ 4.82%
1,050 Briggs & Stratton Corp. 42,263
100,000 Calgon Carbon Corp. 1,175,000
36,000 Cooper Industries, Inc. 1,269,000
10,000 Deere & Co. 813,750
2,500 Emerson Electric Co. 178,750
7,500 Fluor Corp. 420,000
30,000 Giddings & Lewis, Inc. 523,125
24,000 Grainger (W.W.), Inc. 1,449,000
25,000 Hillenbrand Industry, Inc. 700,000
15,000 TRINOVA Corp. 506,250
7,077,138
CONSUMER CYCLICAL _ 14.83%
48,000 Bassett Furniture Industries, Inc. 1,206,000
30,000 Block (H&R), Inc. 1,140,000
75,000 Brinker International, Inc. 1,115,625
50,000 Brown Group, Inc. 918,750
40,000 Dillard Department Stores, Inc. Cl. A 1,275,000
7,500 Donnelley (R.R.) & Sons 292,500
28,000 Dun & Bradstreet Corp. 1,620,500
22,000 Gannett Co. 1,201,750
25,000 General Motors Corp. 1,171,875
30,000 Genuine Parts Co. 1,203,750
10,000 Knight-Ridder, Inc. 586,250
50,000 Limited (The), Inc. 950,000
20,000 Mallinckrodt Group, Inc. 792,500
46,150 Masco Corp. 1,269,125
25,000 May Department Stores Co. 1,093,750
10,000 Mercantile Stores Co., Inc. 450,000
15,000 Penney (J.C.) Co., Inc. 744,375
12,000 Service Corp. International 469,500
38,000 Snap-On, Inc. 1,444,000
125,000 Stride Rite Corp. 1,421,875
50,000 TJX Companies, Inc. 593,750
30,000 Toys "R" Us, Inc. 810,000
21,770,875
CONSUMER STAPLES _ 8.13%
65,000 ALZA Corp. 1,495,000
10,000 American Home Products Corp. 848,750
88,750 Archer-Daniels-Midland Co. 1,364,531
15,000 Bard (C.R.), Inc. 457,500
7,500 Baxter International, Inc. 308,437
70,000 Bob Evans Farms, Inc. 1,347,500
16,000 Bristol-Myers Squibb Co. 1,166,000
40,000 Community Psychiatric Centers 470,000
25,000 Corning, Inc. 715,625
10,000 Eastman Kodak Co. 592,500
70,000 Lance, Inc. 1,277,500
10,000 Merck & Co., Inc. 560,000
5,000 Pioneer Hi-Bred International, Inc. 230,000
40,000 Rubbermaid, Inc. 1,105,000
11,938,343
ENERGY _ 8.09%
16,000 Amoco Corp. 1,026,000
10,000 Atlantic Richfield Co. 1,073,750
65,000 Baker Hughes, Inc. 1,324,375
50,000 Dresser Industries, Inc. 1,193,750
15,000 Halliburton Co. 626,250
20,000 Kerr-McGee Corp. 1,110,000
25,000 Louisiana Land & Exploration 890,625
50,825 Mitchell Energy & Development Corp. Cl. A 914,850
35,000 Phillips Petroleum Co. 1,137,500
14,000 Schlumberger, Ltd. 913,500
7,500 Texaco, Inc. 484,688
60,000 USX-Marathon Group 1,185,000
11,880,288
FINANCIAL _ 2.71%
20,000 Aon Corp. 817,500
4,000 CIGNA Corp. 416,500
20,000 Liberty Corp. S.C. 650,000
30,000 NBD Bancorp, Inc. 1,147,500
3,000 Unicom Corp. 90,750
20,000 Wachovia Corp. 862,500
3,984,750
TECHNOLOGY _ 6.64%
60,000 ADT, Ltd. 825,000
6,300 AMP, Inc. 242,550
25,000 Apple Computer, Inc. 931,250
25,000 Digital Equipment Corp. 1,140,625
14,000 International Business Machines Corp. 1,321,250
10,000 Motorola, Inc. 763,750
40,000 Novell, Inc. 730,000
38,000 Perkin-Elmer Corp. 1,353,750
35,000 Sensormatic Electronics Corp. 805,000
85,000 Tandem Computers, Inc. 1,041,250
25,000 Telxon Corp. 596,875
9,751,300
TRANSPORTATION & SERVICES _ 3.74%
20,000 Consolidated Freightways, Inc. 495,000
7,500 CSX Corp. 630,937
10,000 Norfolk Southern Corp. 747,500
25,000 Roadway Services, Inc. 1,243,750
20,000 Southwest Airlines Co. 505,000
20,000 Union Pacific Corp. 1,325,000
40,000 Yellow Corp. 550,000
5,497,187
UTILITIES _ 12.62%
26,000 AT&T Corp. 1,709,500
20,000 Bell Atlantic Corp. 1,227,500
5,000 BellSouth Corp. 365,625
25,000 Central & South West Corp. 637,500
50,000 Comsat Corp. 1,125,000
35,000 Dominion Resources 1,316,875
60,000 Entergy Corp. 1,567,500
15,000 Florida Progress Corp. 485,625
10,000 FPL Group, Inc. 408,750
27,000 MAPCO, Inc. 1,390,500
75,000 Niagara Mohawk Power Corp. 984,375
50,000 Pacific Telesis Group 1,537,500
40,000 Panhandle Eastern Corp. 1,090,000
60,000 SCANA Corp. 1,440,000
7,500 Sprint Corp. 262,500
40,000 Texas Utilities Co. 1,395,000
30,000 Union Electric Co. 1,121,250
10,000 U.S. West, Inc. 471,250
18,536,250
TOTAL COMMON STOCKS _ 67.95% 99,789,569
CONVERTIBLE PREFERRED STOCK _ 0.64%
25,000 Unisys Corp.,
($3.75 Cm. Cv. A Pfd.) 937,500
Face Market
Amount Description Value
CONVERTIBLE CORPORATE BONDS _ 2.16%
$ 1,000,000 Browning-Ferris Industries, Inc.,
Cv. Sub. Deb., 6.25%,
due August 15, 2012 997,500
300,000 Computervision Corp.,
Cv. Sub. Deb., 8.00%,
due December 1, 2009 220,500
1,000,000 Masco Corp., Cv. Sub. Deb.,
5.25%, due February 15, 2012 907,500
1,200,000 WMX Technologies Inc.,
Cv. Sub. Notes,
2.00%, due January 24, 2005 1,047,000
TOTAL CONVERTIBLE
CORPORATE BONDS _ 2.16% 3,172,500
SHORT-TERM CORPORATE NOTES _ 21.05%
2,000,000 Abbott Laboratories,
5.68%, due October 5, 1995 1,998,107
1,000,000 American Greetings Corp.,
5.73%, due October 25, 1995 995,862
1,000,000 AT&T Corp.,
5.69%, due October 11, 1995 998,103
1,000,000 Amoco Corp.,
5.70%, due October 31, 1995 994,933
1,000,000 Anheuser-Busch Cos., Inc.,
5.67%, due October 5, 1995 999,055
1,000,000 Aon Corp.,
5.70%, due November 21, 1995 991,608
1,000,000 Bell Atlantic Financial Services, Inc.,
5.70%, due October 23, 1995 996,200
1,000,000 Chevron Corp.,
5.72%, due October 26, 1995 995,710
1,000,000 duPont (E.I.) deNemours & Co.,
5.70%, due October 4, 1995 999,208
1,000,000 GTE North, Inc.,
5.75%, due October 13, 1995 997,764
1,000,000 General Mills, Inc.,
5.70%, due October 3, 1995 999,367
1,000,000 Gillette Co.,
5.69%, due November 3, 1995 994,468
1,000,000 Heinz (H.J.) Co.,
5.70%, due October 24, 1995 996,042
1,000,000 IBM Corp.,
5.69%, due October 27, 1995 995,575
1,000,000 Knight Rider,
5.77%, due November 3, 1995 994,390
1,000,000 Laclede Gas & Co.,
5.75%, due October 10, 1995 998,243
1,000,000 Marsh & McClennan Cos., Inc.,
5.73%, due October 10, 1995 998,249
1,000,000 Motorola, Inc.,
5.68%, due October 24, 1995 996,056
1,000,000 PepsiCo, Inc.,
5.69%, due October 11, 1995 998,103
1,000,000 Pfizer, Inc.,
5.68%, due October 20, 1995 996,687
1,000,000 Philip Morris Cos.,
5.68%, due November 10, 1995 993,374
1,000,000 Proctor & Gamble Co.,
5.63%, due November 14, 1995 992,806
1,000,000 Progress Capital Holdings, Inc.,
5.73%, due October 17, 1995 997,135
1,000,000 Raytheon Co.,
5.73%, due October 10, 1995 998,249
1,000,000 Snap-On Tools Corp.,
5.71%, due October 12, 1995 997,938
1,000,000 Texaco, Inc.,
5.75%, due October 6, 1995 998,882
1,000,000 Toys "R" Us, Inc.,
5.70%, due October 10, 1995 998,258
SHORT-TERM CORPORATE NOTES (Continued)
1,000,000 U.S. West Communications, Inc.,
5.70%, due October 17, 1995 997,150
1,000,000 Wal-Mart Stores, Inc.,
5.70%, due May 1, 1995 997,783
1,000,000 Xerox Credit Corp.,
5.70%, due October 25, 1995 995,883
TOTAL SHORT-TERM
CORPORATE NOTES _ 21.05% 30,901,188
GOVERNMENT SPONSORED ENTERPRISES _ 7.08%
1,000,000 Federal Farm Credit Banks
Discount Notes, 5.63%,
due November 9, 1995 993,588
1,500,000 Federal Home Loan Banks
Discount Notes, 5.55%,
due November 2, 1995 1,478,725
1,000,000 Federal Home Loan Banks
Discount Notes, 5.56%,
due November 8, 1995 993,822
1,000,000 Federal Home Loan Mortgage
Corp. Discount Notes, 5.83%,
due October 2, 1995 978,461
1,000,000 Federal Home Loan Mortgage
Corp. Discount Notes, 5.62%,
due October 16, 1995 997,346
1,000,000 Federal National Mortgage
Assn. Discount Notes, 5.55%,
due November 13, 1995 993,063
1,000,000 Federal National Mortgage
Assn. Discount Notes, 5.57%,
due November 13, 1995 993,038
1,000,000 Federal National Mortgage
Assn. Discount Notes, 5.55%,
due December 15, 1995 988,129
2,000,000 Federal National Mortgage
Assn. Discount Notes, 5.57%,
due December 27, 1995 1,972,459
TOTAL GOVERNMENT SPONSORED
ENTERPRISES _ 7.08% 10,388,631
REPURCHASE AGREEMENT _ 0.83%
1,215,000 Northern Trust Co.,
6.00%, due October 2, 1995
(Collateralized by U.S.
Treasury Notes, 4.00%,
due January 31, 1996) 1,215,000
TOTAL INVESTMENTS _ 99.71% $ 146,404,388
Other assets less liabilities _ 0.29% 422,205
TOTAL NET ASSETS _ 100.00%
(equivalent to $16.76 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
8,759,420 shares outstanding) $ 146,826,593
BASIS OF DETERMINING MARKET VALUE. Each investment is valued at the latest
sales price on September 30, 1995, as reported by the principal exchange on
which the issue is listed. If no sale is reported, or if unlisted, the
average of the latest
bid and asked price is used.
This report has been prepared for the information of the Shareholders of
Scout Stock Fund, Inc., and is not to be construed
as an offering of the shares of the Fund. Shares of this Fund and of the
other Scout Funds are offered only by the Prospectus,
a copy of which may be obtained from Jones & Babson, Inc.
