Boring Portfolio Report
ANN ARBOR, Mich. (Sept. 12) -- The U.S. Labor Department reported this morning
that prices at the wholesale level actually declined 0.1% last month, excluding
the volatile energy and food components. In addition, a weekly jobless claims
report suggested that employment might not be as tight as many economic analysts
had suspected. That data, following on the heels of yesterday's beige picture
of inflation as portrayed in a report to the Federal Reserve board, helped
send stocks higher today.
The Dow reached an all-time intra-day high of 5,794 but fell back a bit in
the afternoon to close at 5,772 -- up 17 points on good volume of 401 million
shares on the NYSE. The S&P 500 advanced 3.65 points (+0.58%), while
the Nasdaq ripped for a fine 12-point gain (+1.03%)
Before you get too carried away, though, note that Friday the 13th brings
the closely-watched report on changes in prices that consumers pay, which
may or may not confirm today's PPI story.
As for the Boring Portfolio, it tacked a 2 percentage-point gain on to
yesterday's 1.72% advance. All nine Borefolio holdings rose in Thursday's
trading. To paraphrase a certain breakfast cereal commercial, the grown-up
in me likes the robust asset growth without undue risk, while the kid in
me goes, "Whee-e-e!"
Healthcare stocks were strong today, and the Borefolio's Oxford Health Plans
and Prime Medical Services were right at the front of the pack. The Ox rambled
for $2 1/8 (on top of yesterday's $3 1/8) on volume of 2.5 million shares.
Meantime, PMSI extended its winning streak to three, closing above the $13
mark on triple the stock's average daily volume.
Prime Medical appears to have shaken the bad karma that followed it around
ever since the company announced -- and subsequently canceled -- a secondary
share offering earlier this summer. This morning, Donaldson Lufkin &
Jenrette Securities initiated coverage of PMSI with an "outperform" rating
and a 12-month price target of 17 (according to a Dow Jones wire story).
A participant in the PMSI stock folder here in Fooldom passed along the info
that PMSI will be participating in the DLJ Emerging Growth conference on
Monday, Sept. 16.
In addition, Prime Medical reported today that John A. McEntire, IV had joined
its Board of Directors. According to the press release, "Mr. McEntire has
played an instrumental role as a financial consultant to Prime since 1993."
He also currently serves as VP of Corporate Planning and Development of Parker
& Parsley Petroleum Co. Prior to joining that outfit, McEntire worked
in the banking and investment banking industry for 10 years.
Cisco connected for a $1 7/8 advance, with nearly 7 million CSCO electrons
passing through the Nasdaq circuits. Breaking with tradition, Cisco did not
announce that it had absorbed any new businesses today. Instead, recent news
speaks to the good-neighbor side of this aggressive company.
A few days ago, it was reported that Cisco is donating $50,000 to the Food
Bank of North Carolina Food to assist victims of Hurricane Fran. A story
today notes Cisco's participation in NetDay96: "...an 'electronic barn raising'
planned in some 35 states this fall and beyond."
Along with Apple, Netscape, 3Com, U.S. Robotics, and other leading technology
companies, Cisco is pledging product and service donations, price discounts,
technical expertise, and volunteer labor to provide schools across America
with teacher training, network design assistance, training of technical
volunteers, advice on hardware needs, and other "how to" help in order to
get schools up and running on the Internet. Check out http://www.NetDay96.com
for details.
Among other Borefolio stocks, Green Tree grew $ 3/8 on today's benign economic
news. Borders booked another $ 3/4 advance, Shaw Group piped in for a $1
1/8 rise past the $30 mark, TXI cemented a quarter-point gain, and the Spiders
climbed $ 15/32. Carlisle added $ 3/8, too, but I can't think of a cutesy
way to phrase that. E-mail me if something comes to mind.
Or better yet, don't. Your fellow readers deserve at least some relief.
Thursday, September 12, 1996
BGP + 3/4 ...CSL + 3/8 ...CSCO +1 7/8 ...GNT + 3/8 ...OXHP +2 1/8 ...
PMSI + 5/8 ...SHAW +1 1/8 ...SPY +15/32...TXI + 1/4 ...
*Scroll down or expand screen for full portfolio accounting
Day Month Year History
BORING +2.00% 3.70% 11.89% 11.89%
S&P 500 +0.58% 2.94% 7.97% 7.97%
NASDAQ +1.03% 2.13% 11.99% 11.99%
Rec'd # Security In At Now Change
4/12/96 100 The Shaw Gr 18.84 30.63 62.54%
2/28/96 200 Borders Gro 22.51 35.00 55.47%
3/8/96 400 Prime Medic 10.07 13.25 31.60%
2/2/96 200 Green Tree 30.39 36.25 19.29%
1/29/96 100 Texas Indus 54.50 63.88 17.20%
7/23/96 100 S&P Deposit 64.15 67.53 5.27%
8/13/96 100 Carlisle Co 52.65 55.13 4.70%
6/26/96 100 Cisco Syste 53.90 56.13 4.13%
5/24/96 100 Oxford Heal 48.02 46.38 -3.44%
Rec'd # Security Cost Value Change
2/28/96 200 Borders Gro 4502.49 7000.00 $2497.51
3/8/96 400 Prime Medic 4027.49 5300.00 $1272.51
4/12/96 100 The Shaw Gr 1884.16 3062.50 $1178.34
2/2/96 200 Green Tree 6077.49 7250.00 $1172.51
1/29/96 100 Texas Indus 5449.99 6387.50 $937.51
7/23/96 100 S&P Deposit 6414.99 6753.13 $338.14
8/13/96 100 Carlisle Co 5264.99 5512.50 $247.51
6/26/96 100 Cisco Syste 5389.99 5612.50 $222.51
5/24/96 100 Oxford Heal 4802.49 4637.50 -$164.99
CASH $4428.44
TOTAL $55944.07