A survey of past research reveals that intellectual capacity, particularly verbal proficiency, are important factors in reading performance. The purpose of this study was to determine if classroom teachers, through informal observation, can recognize indicators of intellectual ability. The Strang Informal Observation of Capacity Inventory and Thurstone's Primary Mental Abilities Test were administered to 195 kindergartners who were enrolled in the classes of 11 teachers in 11 different elementary schools. Findings indicate that an informal inventory of intellectual capacity was valid, that teachers can successfully use an informal inventory to make decisions regarding children's intellectual capacity, that accuracy of teachers' assessments was of a high level, and that the Strang Informal Observation of Capacity Inventory was appropriate for use with a heterogeneously grouped class. (KS)