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 March 31, 1997
                                     
                                    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.)
                                     
                                     
           10 West 100 South, Suite 450, Salt Lake City, Utah 84101
           --------------------------------------------------------
                 (Address of principal executive offices)


          Registrant's telephone no., including area code: (801) 533-2727


                                  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 March 31, 1997 - 48,000,000 shares of  $.001
 par value Common Stock.
 
              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
                                     
                                                      March 31,   December 31,
                                                         1997         1996
                                                     ------------ ------------

CURRENT ASSETS:
  Cash in bank                                       $     3,779  $       310
                                                     ------------ ------------



                   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                   $     2,307  $       -
  Payable to related party                                29,281       28,124
                                                     ------------ ------------

       Total Liabilities                                  31,588       28,124


STOCKHOLDERS' EQUITY:
  Preferred stock                                            -            -
  Common stock                                            48,000       44,500
  Capital in excess of par value                          18,102       18,102
  Deficit accumulated during the
    development stage                                    (93,911)     (90,416)
                                                     ------------ ------------

       Total Stockholders' Equity                        (27,809)     (27,814)
                                                     ------------ ------------
       Total Liabilities and Stockholders' Equity    $     3,779  $       310
                                                     ------------ ------------

                                     
                                     
                                     
              The accompanying notes are an integral part of
                        these financial statements.
                                     
   NOTE:  The balance sheet at December 31, 1996 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         From Inception
                                           Months Ended           on March 28,
                                             March 31,            1988 Through
                                           __________________________March 31,
                                               1997        1996       1997
                                           __________ __________ ___________
REVENUE:
   Interest income                          $     -    $     -    $  2,472
                                           __________ __________ ___________
EXPENSES:
   Amortization of organization costs             -          -       2,136
   Administrative Expenses and Interest         1,489      1,260    29,875
   Professional fees                            2,006        -      63,772
                                           __________ __________ ___________
      Total Expenses                            3,495      1,260    95,782
                                           __________ __________ ___________

LOSS BEFORE INCOME TAXES                       (3,495)    (1,260)  (93,311)

INCOME TAXES CURRENT                              -          -        (600)
                                           __________ __________ ___________

NET LOSS                                       (3,495)    (1,260)  (91,911)
                                           __________ __________ ___________

LOSS PER SHARE                             $    (.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 Three       From Inception
                                             Months Ended         on March 28,
                                               March 31,          1988 Through
                                            _________________________March 31,
                                                 1997      1996        1997
                                             _________________________________
Cash Flows to Operating Activities:
   Net income (loss)                          $ (3,495)  $ (1,249)  $ (93,911)
                                             _________________________________
   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                            2,307   (10,132)     12,339
      Income taxes payable                          -         100         -
                                              ________________________________
                                                  2,307        -       12,439
                                              ________________________________
        Net Cash Flows to Operating
          Activities                             (1,188)    (1,249)   (81,472)
                                              ________________________________
Cash Flows to Investing Activities
   Related Party Payable                          1,157     10,668     19,149
                                              ________________________________
Cash Flows from (to) Financing Activities:
   Proceeds from common stock issuance            3,500        -       93,000
   Costs of issuing stock                           -          -      (26,898)
                                              ________________________________
        Net Cash Flows from (to) Financing
          Activities                              3,500        -       66,102
                                              ________________________________
Net Increase (Decrease) in Cash                   3,469       (713)     3,779

Cash at Beginning of Period                         310        801        -
                                              ________________________________

Cash at End of Period                         $   3,779  $      88  $   3,779
                                              ________________________________

Supplemental Disclosure of Cash Flow Information:

   The Company paid $236 in interest expense during the period ended March
31, 1997.

              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 March 31, 1997
  and 1996, 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, 1996
  audited financial statements.  The results of operations for the period
  ended March 31, 1997 and 1996, 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 months ended March 31, 1997 and 1996, the Company
  incurred expenses under the agreement of $300.  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 March 31, 1997, the Company owed $11,632 to the individual.
  
  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.  On September 17, 1996, the amount owing to the
  former parent was transferred to an officer, director and shareholder of
  the Company.  Also, on February 27, 1997, the officer advanced $598 to pay
  certain administrative fees of the Company. At March 31, 1997, the Company
  owed 17,649 to the individual.
  
  During March, 1993 the Company issued 35,000,000 restricted shares of its
  common stock ($.001 par value) upon payment of $35,000 by certain persons
  who would then have absolute voting control of the Company.  During the
  years ended December 31, 1995 and 1996, and the period ended March 31,
  1997, the same shareholders purchased an additional 8,000,000 shares of
  common stock at par value for $8,000.
  
  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, 1997.
  
  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.























                                      -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 shares of common stock for $35,000
  ($.001 per share).  The persons who purchased the stock also acquired
  absolute voting control of the Company.
  
     Liquidity and Capital Resources
  
  At March 31, 1996 and 1995 the Company's assets consisted of cash in the
  amounts of $88 and $3,827, respectively, from the issuance of common stock,
  from advances from the Company's former parent corporation and proceeds
  from a private placement of 35,000,000 shares of common stock for $35,000.
  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

          None

     (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                         March 16, 1998
________________________________        Date:___________________
Gary B. Peterson
President



































                                      -9-
<PAGE>