SCOUT STOCK FUND, INC.
A no-load mutual fund with primary emphasis
on long-term growth of both capital and income.
Quarterly Report
March 31, 1996
TO THE SHAREHOLDERS
For first quarter 1996, Scout Stock Fund earned a total
return (price change and reinvested distributions) of 3.67%
in comparison to the unmanaged Standard & Poor's 500 which
earned 5.37% and the Lipper Growth Funds which earned 4.51%
for the same time period.
Performance data contained in this report is for past
periods only. Past performance is not predictive of future
performance. Investment returns and share value will
fluctuate, and redemption value may be more or less than
original cost.
This year's market has been much more volatile when compared
to the steady and continued growth seen last year. But,
despite the market sell-offs of this year, large
capitalization stocks have rallied and produced strong
returns for the quarter.
In actuality, much of the market's return was due to record
cash inflows into a market where demand was high but stock
supply was growing slower, driving up the price of stocks.
But, although inflation remains moderate, rising interest
rates since the end of 1995 have spurred renewed
inflationary fears making the market unstable. In addition,
the recent strength in the US dollar could hurt this year's
earnings for US companies operating in foreign countries
causing their stock prices to fall.
Top 10 Equity Holdings
Market Percent
Value of Total
Alza Corp. $ 1,845,000 1.12%
Snap-On, Inc. 1,776,500 1.08%
Comsat Corp. 1,753,125 1.07%
Dun & Bradstreet Corp. 1,697,500 1.03%
Cyprus Amax Minerals Co. 1,695,000 1.03%
Texas Utilities 1,655,000 1.01%
Archer-Daniels-Midland Co. 1,630,781 0.99%
Weyerhaeuser Co. 1,614,375 0.98%
IBM Corp. 1,555,750 0.95%
Entergy Corp. 1,540,000 0.94%
Top 10 Equity Holdings Total: $16,763,031 10.20%
Note: All market values based on 3/31/96 statement of
assets.
As we look ahead a slowing economy seems highly possible if
interest rates continue to rise and the dollar remains
strong. Although we have seen attractive total returns for
first quarter 1996, it seems unlikely that the strong
performance of last year will be repeated in 1996.
Therefore, we feel this is an appropriate time to adhere to
our established cash reserves. We will continue to search
for under-valued stocks in this lofty market and use cash
reserves as buying opportunities become available.
We appreciate your continued interest in the Scout Stock
Fund as part of your overall financial plan.
Sincerely,
David B. Anderson
UMB Investment Advisors
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 insured by the Federal Deposit
Insurance Corporation or any other applicable deposit
insurance. These shares involve investment risks, including
the possible loss of the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
March 31, 1996
Market
Shares Company Value
COMMON STOCKS 67.33%
Basic Materials 9.11%
70,000 Brush Wellman, Inc. $ 1,251,250
100,000 Calgon Carbon Corp. 1,212,500
5,000 Carpenter Technology Corp. 192,500
25,000 Corning Inc. 875,000
60,000 Cyprus Amax Minerals Co. 1,695,000
2,500 duPont (E.I.) deNemours & Co. 207,500
3,000 Ecolab, Inc. 90,000
50,000 Engelhard Corp. 1,168,750
10,000 Georgia Pacific Corp. 693,750
25,000 International Paper Co. 984,375
50,000 Nalco Chemical Co. 1,537,500
15,000 Rohm & Haas Co. 997,500
25,000 Union Camp Corp. 1,240,625
35,000 Weyerhaeuser Co. 1,614,375
60,000 Worthington Industries, Inc. 1,192,500
14,953,125
Capital Goods 4.31%
20,000 Browning Ferris Industries 630,000
36,000 Cooper Industries, Inc. 1,404,000
20,000 Deere & Co. 835,000
2,000 Emerson Electric Co. 161,500
4,000 Fluor Corp. 273,000
50,000 Giddings & Lewis 950,000
15,000 Grainger (W.W.), Inc. 1,006,875
25,000 Hillenbrand Industry, Inc. 865,625
30,000 Trinova Corp. 956,250
7,082,250
Consumer Cyclical 13.26%
40,000 American Greetings Corp. 1,105,000
48,000 Bassett Furniture Industries 1,248,000
35,000 Block (H&R), Inc. 1,264,375
50,000 Brown Group, Inc. 675,000
40,000 Dillards Dept. Stores, Inc., Cl A 1,385,000
7,500 Donnelley (R.R.) & Sons Co. 258,750
28,000 Dun & Bradstreet 1,697,500
20,000 Gannett Co., Inc. 1,345,000
25,000 General Motors Corp. 1,331,250
25,000 Genuine Parts Co. 1,125,000
27,195 Limited (The) Inc. 516,705
35,000 Mallinckrodt Group, Inc. 1,316,875
40,000 Masco Corp. 1,160,000
25,000 May Department Stores Co. 1,206,250
10,000 Mercantile Stores Co., Inc. 613,750
15,000 Penney (J.C.) & Co., Inc. 746,250
10,000 Readers Digest Assc. OAO 472,500
8,000 Service Corp. International 390,000
38,000 Snap-On, Inc. 1,776,500
125,000 Stride Rite Corp. 1,140,625
40,000 Tjx Companies, Inc. 1,005,000
21,779,330
Consumer Staples 9.49%
60,000 Alza Corp. 1,845,000
7,000 American Home Products Co. 758,625
88,750 Archer-Daniels-Midland Co. 1,630,781
15,000 Bard (C.R.), Inc. 534,375
3,500 Baxter International, Inc. 158,375
90,000 Bob Evans Farms, Inc. 1,462,500
90,000 Brinker International 1,507,500
16,000 Bristol-Myers Squibb Co. 1,370,000
75,000 Community Psychiatric Centers 628,125
8,000 Eastman Kodak Company 568,000
15,000 International Flavors
& Fragrances, Inc. 718,125
90,000 Lance, Inc. 1,400,625
10,000 Merck & Co., Inc. 622,500
3,000 Pioneer Hi-Bred International 157,875
50,000 Rubbermaid, Inc. 1,418,750
30,000 Toys ORO Us, Inc. 810,000
15,591,156
Energy 9.29%
12,000 Amoco Corp. 867,000
12,000 Atlantic Richfield Co. 1,428,000
45,000 Baker Hughes, Inc. 1,316,250
50,000 Dresser Industries, Inc. 1,525,000
15,000 Halliburton Co. 853,125
15,000 Kerr-Mcgee Corp. 952,500
25,000 Louisiana Land & Exploration Co. 1,165,625
27,000 Mapco, Inc. 1,508,625
60,000 Mitchell Energy & Development 1,035,000
35,000 Phillips Petroleum Co. 1,382,500
10,000 Schlumberger, Limited 791,250
4,000 Texaco, Inc. 344,000
75,000 Usx-Marathon Group 1,443,750
20,000 Wmx Technologies Inc. 635,000
15,247,625
Financial 1.81%
10,000 Aon Corp. 517,500
30,000 First Chicago Nbd Corp. 1,245,000
20,000 Liberty Corp. S.C. 660,000
12,000 Unicom Corporation 324,000
5,175 Wachovia Corp. 231,581
2,978,081
Technology 6.87%
60,000 Adt, Ltd. 1,057,500
6,300 Amp, Inc. 260,662
35,000 Apple Computer, Inc. 859,687
25,000 Digital Equipment Corp. 1,378,125
14,000 Ibm, Corp. 1,555,750
25,000 Motorola, Inc. 1,325,000
60,000 Novell, Inc. 802,500
20,000 Perkin-Elmer Corp. 1,082,500
50,000 Sensormatic Electronics 1,012,500
110,000 Tandem Computers, Inc. 976,250
20,000 Telxon Corp. 425,000
10,000 Texas Instruments, Inc. 508,750
1,666 360 Communications Co. 39,775
11,283,999
Transportation & Services 3.41%
10,000 Csx Corp. 456,250
25,000 Caliber Systems, Inc. 1,071,875
40,000 Consolidated Freightways 1,025,000
10,000 Norfolk Southern Corp. 850,000
10,500 Roadway Express Inc. 148,313
20,000 Southwest Airlines Co. 592,500
16,500 Union Pacific Corp. 1,132,312
6,500 US West Media Group 134,062
15,000 Yellow Corp. 187,500
5,597,812
Utilities 9.78%
24,000 AT&T 1,470,000
15,000 Bell Atlantic Corporation 926,250
7,500 Bell South Corporation 277,500
30,000 Central & South West Corp. 855,000
75,000 Comsat Corp. 1,753,125
30,000 Dominion Resources Inc. VA 1,188,750
55,000 Entergy Corp. 1,540,000
10,000 Florida Progress Corp. 341,250
8,500 Fpl Group Inc. 384,625
75,000 Niagara Mohawk Power Corp. 496,875
52,000 Pacific Telesis Group 1,436,500
35,000 Panhandle Eastern Corp. 1,089,375
40,000 Scana Corp. 1,100,000
5,000 Sprint Corp. 190,000
40,000 Texas Utilities Co. 1,655,000
10,000 U. S. West, Inc. 323,750
25,000 Union Electric Co. 1,025,000
16,053,000
Total Common Stocks 67.33% 110,566,378
Convertible Preferred Stock 0.63%
35,000 Unisys Corp.
($3.75 Ser A Cm. Cv. A Pfd.) 1,028,125
Face Market
Amount Description Value
Convertible Corporate Bonds D 1.37%
$ 300,000 Computervision Corp.,
8.0% Conv. Sub Deb.,
due December 1, 2009 226,500
1,000,000 Masco Corp.,
5.25%, due February 15, 2012 975,000
1,200,000 Wmx Technologies,
Conv. Sub. Note,
2.0%, due January 24, 2005 1,050,000
TOTAL CONVERTIBLE
CORPORATE BONDS 1.37% 2,251,500
Short-Term Corporate NOTEs 23.09%
1,000,000 Aig Funding Corp.,
5.3%, due April 3, 1996 999,558
1,500,000 Air Products & Chemicals, Inc.,
5.33%, due April 19, 1996 1,495,780
1,500,000 American Greetings Corp.,
5.22%, due April 3, 1996 1,499,347
1,500,000 AT&T Corp.,
5.29%, due April 17, 1996 1,496,252
1,000,000 Amoco Corp.,
5.18%, due April 2, 1996 999,712
1,500,000 Anheuser-Busch Cos., Inc.,
5.13%, due April 17, 1996 1,496,366
1,500,000 BellSouth Corp.,
5.22%, due April 9, 1996 1,498,042
1,500,000 Chevron Corp.,
5.35%, due April 24, 1996 1,494,649
1,500,000 Deere & Co.,
5.21%, due April 12, 1996 1,497,395
1,500,000 Walt Disney Corp.,
5.22%, due April 9, 1996 1,498,042
1,500,000 duPont (E. I.) deNemours & Co. ,
5.35%, due April 10, 1996 1,497,770
1,500,000 Dunn & Bradstreet,
5.35%, due April 23, 1996 1,494,872
1,000,000 Gte North, Inc.,
5.42%, due April 11, 1996 998,343
1,500,000 Hersheys Corp.,
5.23%, due April 8, 1996 1,498,256
1,000,000 Ibm Corp.,
5.40%, due April 2, 1996 999,700
1,500,000 Kimberly Clark,
5.27%, due May 10, 1996 1,491,216
1,500,000 Knight Ridder,
5.20%, due April 10, 1996 1,497,833
1,500,000 3M Corp.,
5.22%, due April 24, 1996 1,494,780
1,500,000 Nalco Chemical Co.,
5.25%, due April 11, 1996 1,497,593
1,500,000 PepsiCo, Inc.
5.21%, due April 12, 1996 1,497,395
1,500,000 Pfizer,
5.10%, due April 8, 1996 1,498,300
1,500,000 Phillip Morris Cos., Inc.,
5.35%, due April 16, 1996 1,496,433
1,500,000 Progress Capital Holdings, Inc.,
5.38%, due April 26, 1996 1,494,171
Short-Term Corporate NOTEs (Continued)
1,500,000 Shell Oil Corp.,
5.32%, due April 26, 1996 1,494,236
1,500,000 Wal-Mart Stores, Inc.,
5.15%, due April 8, 1996 1,498,283
1,500,000 Wisconsin Electric & Power Co.,
5.36%, due April 18, 1996 1,495,980
1,000,000 Xerox Corp.,
5.20%, due April 2, 1996 999,711
TOTAL SHORT-TERM
CORPORATE NOTES 23.09% 37,920,015
Government Sponsored Enterprises 6.94%
2,000,000 Federal Farm Credit Banks
Discount Notes, 5.13%,
due June 5, 1996 1,981,190
1,500,000 Federal Home Loan Bank
Discount Notes, 4.96%,
due May 7, 1996 1,492,353
1,000,000 Federal Home Loan Bank
Discount Notes, 5.13%
due August 2, 1996 982,330
1,500,000 Federal National Mortgage Assn.
Discount Notes, 5.27%,
due April 12, 1996 1,497,365
2,000,000 Federal National Mortgage Assn.
Discount Notes, 5.21%,
due May 24, 1996 1,984,370
1,500,000 Federal National Mortgage Assn.
Discount Notes, 4.84%,
due June 17, 1996 1,484,270
2,000,000 Federal National Mortgage Assn.
Discount Notes, 5.16%,
due July 9, 1996 1,971,333
TOTAL GOVERNMENT SPONSORED
ENTERPRISES 6.94% 11,393,211
REPURCHASE AGREEMENT 0.45%
750,000 Northern Trust Co.,
4.85%, due April 1, 1996
(Collateralized by U.S.
Treasury Notes, 5.75%,
due September 30, 1997) 750,000
TOTAL INVESTMENTS 99.81% $163,909,229
Other assets less liabilities 0.19% 304,211
TOTAL NET ASSETS 100.00%
(equivalent to $16.94 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
9,693,973.731 shares outstanding) $164,213,440
BASIS OF DETERMINING MARKET VALUE. Each investment is valued
at the latest sales price on March 31, 1996, 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.
BOARD OF DIRECTORS AND OFFICERS
Board of Directors
Larry D. Armel
William E. Hoffman, D.D.S.
Stephen F. Rose
Stuart Wien
Officers
Larry D. Armel, President
P. Bradley Adams, Vice President & Treasurer
Michael A. Brummel, Vice President
Martin A. Cramer, Vice President & Secretary
Jack G. Dyer, Vice President
Manager and Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Legal Counsel
Stradley, Ronon, Stevens & Young,
Philadelphia, Pennsylvania
John G. Dyer, Kansas City, Missouri
Custodian
UMB Bank, n.a., Kansas City, Missouri
JONES & BABSON
MUTUAL FUNDS
P.O. Box 410498
Kansas City, MO 64141-0498
TOLL-FREE 1-800-996-2862
