Boring Portfolio Report
Friday, March 22, 1996

(FOOL GLOBAL WIRE)
by Greg Markus (MF Boring)

(ANN ARBOR, Mar 22) -- On Thursday, the Borefolio had but a single stock on the upside (Prime Medical), yet it managed a net gain for the session and outperformed all the major market averages. Today, we had four stocks up (including even our wayward Lam), only one down (Borders). Yet the net advance was ... zippo. Zero-point-zilch-nada, to be precise. Sigh.

Clearly, we need something to jump-start the Boring Portfolio. Another buy, perhaps? Exactamente! So on Monday, I'll stuff 200 shares of LCS Industries (NASD:LCSI) into the sack. Gimme an L! Gimme a C! Gimme an ....

Hey! Wake up! Never heard of LCSI, you say? Sounds boring, you say? Well, how about this: the value of LCSI shares has QUINTUPLED in the past 12 months and nearly DOUBLED in the past two months. Still bored?

What does LCS Industries do? Well, have you ever been a member of a book or record club, bought anything from a catalog, or used a 1-800 number to order some schlock you saw advertised on TV? Have you ever received junk mail offering "the [YOUR NAME HERE] household a limited edition commemorative Elvis plate"--or something equally compelling? Have you ever raced from the shower to answer the phone only to discover some telemarketer at the other end asking why you haven't yet joined MCI's "Friends and Family" calling plan?

If you said yes to any of the above, then chances are that you've met LCS Industries. And chances are even better that your name, address, phone number, buying habits, demographics of the zip code in which you reside, deodorant preeference (or lack thereof), and who knows what else are in one of LCS's databases.

Now you're probably wondering why anyone would want to buy shares of a junk mail/telemarketing/informercial fulfillment outfit. I guess my reply is along the lines of "if you can't beat 'em, own 'em."

Two trends are undeniable in the retail industry: (1) tailoring one's marketing appeals to specific customer segments and (2) outsourcing operations wherever and whenever it makes sense. LCS is smack on top of both of those trends. Although I couldn't get the company to comment directly about it, my strong sense is that once MCI begins marketing its new internet access package, and as cable companies and other bandwidth access providers join in the party, LCS could see a lot of new business come its way.

If you care to learn more about LCSI, the company and the stock, click into the folder here in the Boring Portfolio area containing my full review. That review will be available for you 'round 7:30 PM Eastern tonight. Perfect for reading during pauses in the hoops action later tonight and over the week-end.

Have a great one.