U.S. SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549
                           _____________________

                                FORM 10-QSB
                           _____________________
                                     
 [X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                           EXCHANGE ACT OF 1934
                 For the quarter ended September 30, 1996
                                     
                                    OR
                                     
 [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                           EXCHANGE ACT OF 1934
                     Commission file number 33-24138-D
                           _____________________
                                     
                                     
                           CAPITAL GROWTH, INC.
        -----------------------------------------------------------
        (Name of Small Business Issuer as specified in its charter)

                 Nevada                           87-0463772
     -------------------------------         -----------------
     (State of other jurisdiction of         (I.R.S. employer
     incorporation or organization)         identification No.)
                                     
                                     
           150 Wright Bros. Drive, #570, Salt Lake City, UT  84116
           -------------------------------------------------------
                 (Address of principal executive offices)


          Registrant's telephone no., including area code: (801) 575-6600


                                No Change
      ---------------------------------------------------------------
      Former name, former address, and former fiscal year, if changed
                            since last report.
                                     
Securities registered pursuant to Section 12(b) of the Exchange Act:  None
                                     
Securities registered pursuant to Section 12(g) of the Exchange Act:  None
                                     


 Check whether the Issuer (1) has filed all reports required to be filed
 by Section 13 or 15(d) of the Exchange Act during the preceding 12
 months (or for such shorter period that the registrant was required to
 file such reports), and (2) has been subject to such filing requirements
 for the past 90 days.  Yes _X_  No ___.

 Common Stock outstanding at September 30, 1996 - 44,500,000 shares of
 $.001 par value Common Stock.

                                     - 1 -

                NOTE:  Page 1 of 9 sequentially numbered pages.
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 1 Financial Statements

                           CAPITAL GROWTH, INC.
                       [A Development Stage Company]
                                     
                         CONDENSED BALANCE SHEETS
                                [Unaudited]
                                     
                                  ASSETS

                                           September 30, December 31,
                                                1996         1995
                                            -----------  -----------
CURRENT ASSETS:
  Cash in bank                               $     856    $     801
                                            ===========  ===========


                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                           $       -    $  10,132
  Payable to officer                            11,032            -
  Payable to related corporation                16,544       15,724
                                            -----------  -----------
       Total Liabilities                        27,576       25,856
                                            -----------  -----------

STOCKHOLDERS' EQUITY:
  Preferred stock                                    -            -
  Common stock                                  44,500       42,500
  Capital in excess of par value                18,102       18,102
  Deficit accumulated during the
    development stage                          (89,322)     (85,657)
                                            -----------  -----------
       Total Stockholders' Equity              (26,720)     (25,055)
                                            -----------  -----------
       Total Liabilities and Stockholders'
         Equity                              $     856    $     801
                                            ===========  ===========  

     
     
     
     
     
     

                The accompanying notes are an integral part of
                         these financial statements.

    NOTE:  The balance sheet at December 31, 1995 has been taken from the
                 audited financial statements at that date.

                                     - 2 -
<PAGE>
                           CAPITAL GROWTH, INC.
                       [A Development Stage Company]
                                     
                         STATEMENTS OF OPERATIONS
                                     
                                [Unaudited]





                            For the Three       For the Nine From Inception
                            Months Ended        Months Ended  on March 28,
                            September 30,       September 30,  1988 Through
                       --------------------------------------  September 30,
                           1996      1995      1996      1995       1996
                       --------- --------- --------- ---------  ---------

INTEREST INCOME        $      -  $      8  $      -  $     51   $  2,471
                       --------- --------- --------- ---------  ---------

EXPENSES:
   General and
     administrative         568       635     2,499     3,359     27,116
   Amortization               -         -         -         -      2,136
   Professional fees      1,166     2,400     1,166     3,310     62,541
                       --------- --------- --------- ---------  ---------
TOTAL EXPENSES            1,734     3,035     3,665     6,669     91,793


NET LOSS                 (1,734)   (3,027)   (3,665)   (6,618)   (89,322)
                       ========= ========= ========= =========  =========
LOSS PER SHARE         $   (.00) $   (.00) $   (.00) $   (.00)  $   (.01)
                       ========= ========= ========= =========  =========


















                  The accompanying notes are an integral part of
                            these financial statements.

                                     - 3 -
<PAGE>
                           CAPITAL GROWTH, INC.
                       [A Development Stage Company]
                                     
                         STATEMENTS OF CASH FLOWS
                                     
                                [Unaudited]



                                              For the Nine   From Inception
                                              Months Ended   on March 28,
                                              September 30,      Through
                                          -------------------- September 30,
                                              1996      1995       1996
                                           --------- --------- ----------  
Cash Flows to Operating Activities:
   Net income (loss)                        $(3,665)  $(6,618)  $(89,322)
                                           --------- --------- ----------  
   Adjustments to reconcile net income to
     net cash used by operating activities:
     Amortization expense                         -         -      2,136
     Increase in organization costs               -         -     (2,136)

     Changes in assets and liabilities:
      Accounts payable                      (10,132)   (1,260)         -
      Income taxes payable                        -         -          -
                                           --------- --------- ----------  
                                            (10,132)   (1,260)         -
                                           --------- --------- ----------  
        Net Cash Flows to Operating
          Activities                        (13,797)   (5,358)   (89,322)
                                           --------- --------- ----------  
Cash Flows to Investing Activities                -         -          -
                                           --------- --------- ----------  
Cash Flows from (to) Financing Activities:
   Proceeds (to) from related entities       11,852    (1,982)    27,576
   Proceeds from common stock issuance        2,000      2500     89,500
   Costs of issuing stock                         -         -    (26,898)
                                           --------- --------- ----------  
        Net Cash Flows from (to) Financing
          Activities                         13,852       518     90,178
                                           --------- --------- ----------  
Net Increase (Decrease) in Cash                  55    (4,840)       856

Cash at Beginning of Period                     801     5,641          -
                                           --------- --------- ----------  
Cash at End of Period                       $   856   $   801   $    856
                                           ========= ========= ==========   
Supplemental Disclosure of Cash Flow Information:


    The Company accrued $720 in interest expense to a related corporation
                during the period ended September 30, 1996.
The accompanying notes are an integral part of these financial statements.

                                     - 4 -
<PAGE>
                           CAPITAL GROWTH, INC.
                       [A Development Stage Company]
                                     
             NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
     
NOTE 1 - CONDENSED FINANCIAL STATEMENTS

  The accompanying financial statements have been prepared by the
  Company without audit.  In the opinion of management, all adjustments
  (which include only normal recurring adjustments) necessary to present
  fairly the financial position, results of operations and cash flows at
  September 30, 1996 and 1995, and for all periods presented have been
  made.

  Certain information and footnote disclosures normally included in
  financial statements prepared in accordance with generally accepted
  accounting principles have been condensed or omitted.  It is suggested
  that these condensed financial statements be read in conjunction with
  the financial statements and notes thereto included in the Company's
  December 31, 1995 audited financial statements.  The results of
  operations for the period ended September 30, 1996 and 1995, are not
  necessarily indicative of the operating results for the full year.

NOTE 2 - RELATED PARTY TRANSACTIONS

  Commencing January 1, 1996, the Company agreed to pay $100 per month
  to a shareholder, officer and director of the Company for accounting
  and office expenses.  For the three and nine months ended September
  30, 1996 the Company incurred expenses under the agreement of $300 and
  $900.  At January 1, 1996, the Company owed $10,132 to an accounting
  firm whose managing partner was an officer and director of the
  company.  On January 1, 1996, the officer terminated his employment
  with the accounting firm and at the time of termination the firm
  agreed to transfer the outstanding obligation to the officer.  At
  September 30, 1996, the Company owed $11,032 to the individual.  For
  the three and nine months ended September 30, 1995, the company
  incurred no professional fees and $910 to the accounting firm
  mentioned above and as of September 30, 1995, owed the firm $9,832.

  Starting in July 1994, the Company agreed to pay interest expense at
  6% to its former parent company, Data Growth, Inc.  The loans, on
  which interest was charged, were advanced to the Company by its former
  parent during the years 1990 through 1993.  At September 30, 1995
  $14,823 was owing to the former parent.  At September 30, 1996,
  $16,544 was owing to the former parent.

  During March, 1993, the Company issued 35,000,000 units, consisting of
  one restricted share of its common stock ($.001 par value) and an A
  warrant and a B warrant, upon payment of $35,000 by certain persons
  who would then have absolute voting control of the Company. During
  August 1996, an additional 2,000,000 shares were issued to the
  individual at par value ($2,000).

  During March, 1993, an officer, director and principal shareholder of
  the Company granted an option wherein the optionee has the right to
  purchase 1,000,000 shares of the Company's common stock currently
  owned by the officer within seven years of the grant of option or
  within two years of the closing of an acquisition by the Company.

                                     - 5 -
<PAGE>
                           CAPITAL GROWTH, INC.
                       [A Development Stage Company]

NOTE 3 - PUBLIC OFFERING OF COMMON STOCK

  The initial issuance of the Company's common stock occurred in August,
  1988. Such shares are a component of 5,000,000 units issued.  Each
  unit consists of one (1) share of the aforementioned common stock and
  two (2) warrants to purchase shares of common stock.  Initially, each
  class "A" warrant entitled the holder thereof to purchase one share of
  common stock at a price of $.20 per share during the period up to and
  including March 31, 1990.  Each class "B" warrant entitles the holder
  thereof to purchase one share of common stock at a price of $.30 per
  share during the period up to and including March 31, 1990.  This
  period has been extended by the Board of Directors for both "A" and
  "B" warrants to December 31, 1996.

  The Company has prepared a registration statement through which it
  registered, for distribution to the shareholders of the parent
  corporation, Data Growth, Inc., 4,600,640 of the aforementioned units
  of common stock and warrants.  The Company registered the units on
  Form S-18 in accordance with the Securities Act of 1933.  Such
  registration became effective on December 15, 1988.  Costs of the
  public offering, amounting to $26,898 have been charged against
  capital in excess of par value.

NOTE 4 - GOING CONCERN

  The accompanying financial statements have been prepared in conformity
  with generally accepted accounting principles which contemplate
  continuation of the Company as a going concern.  However, the Company
  has incurred losses since inception and has expended all of its
  working capital and has not yet been successful in establishing
  profitable operations.  These factors raise substantial doubt about
  the ability of the Company to continue as a going concern.  In this
  regard, management is proposing to raise additional funds through
  loans and/or through additional sales of its common stock or through a
  proposed acquisition of another company by issuing common stock.
  There is no assurance that the Company will be successful in raising
  this additional capital.  The financial statements do not include any
  adjustments that might result from the outcome of these uncertainties.















                                     - 6 -
<PAGE>
                           CAPITAL GROWTH, INC.
                       [A Development Stage Company]
     
PART I FINANCIAL INFORMATION

ITEM 2 Management's Discussion and Analysis of Financial Condition and
       Results of Operations.

  The Company was incorporated March 28, 1988 for the purpose of
  investing in any and all types of assets, properties, and businesses.
  The Company has completed a public stock distribution on behalf of its
  sole shareholder, Data Growth, Inc. with 4,600,460 shares being
  distributed to the shareholders of Data Growth, Inc.  Distribution
  expenses of $26,898 were offset against the amount paid by Data
  Growth, Inc. for the stock.  The distribution was registered on Form S-
  18 with the Securities and Exchange Commission.  The Company's only
  business activity, to date, has been its formation, the registration
  of its securities and the preliminary investigation of potential
  investments and acquisitions. During March 1994, the Company issued
  35,000,000 warrants, consisting of one share of common stock and an A
  warrant and a B warrant, for $35,000 ($.001 per unit).  The persons
  who purchased the stock also acquired absolute voting control of the
  Company.  During August, 1996 an additional 2,000,000 shares of stock
  were issued to the same individual for $2,000 ($.001 per share).

     Liquidity and Capital Resources

  At September 30, 1996 and 1995 the Company's assets consisted of cash
  in the amounts of $856 and $801, respectively, from the issuance of
  common stock, from advances from the Company's former parent
  corporation and proceeds from private placements of consisting of one
  share of common stock and an A warrant and a B warrant, for $35,000,
  and 2,000,000 shares of common stock for $37,000.  The Company has no
  other resources.  At present, the Company is engaged in the search for
  potential investments or acquisitions of private companies.
  Management believes that any acquisition will be made by issuing
  shares of the Company's unissued common stock.  The Company's
  liquidity, capital resources and financial statements will be
  significantly different subsequent to the consummation of any
  acquisition.

      Results of Operations

  The Company's only operation to date has been the preliminary
  investigation of potential acquisitions.





                                     - 7 -
<PAGE>
                                CAPITAL GROWTH, INC.
                          [A Development Stage Company]
     


PART II OTHER INFORMATION

ITEM 1 Legal Proceedings

       None

ITEM 2 Changes in Securities

       None

ITEM 3 Defaults on Senior Securities

       None

ITEM 4 Submission of Matters to a Vote of Security Holders

       None

ITEM 5 Other Matters

       None

ITEM 6 Exhibits and Reports on Form 8-K

     (a) Exhibits

         Exhibit 27 - Financial Data Schedule

     (b) Reports on Form 8-K

           None




















                                     - 8 -
<PAGE>

                                SIGNATURES
       

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

CAPITAL GROWTH, INC.


   /s/ Gary B. Peterson                 Date:  January 15, 1997
-------------------------                     -------------------------  
Gary B. Peterson
President









































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