Boring Portfolio Report
ANN ARBOR, Mich. (Oct. 30) -- The Dow lost 14 points today (-0.23%) and slipped
back beneath the 6,000 mark. The S&P 500 closed slightly lower. On the
Nasdaq, however, a tech rebound helped erase some of Tuesday's losses. The
Naz picked up 3 points, or 0.27%.
The Boring Portfolio had five stocks rise and only two (Borders Group and
Prime Medical) fall, but the losses more than offset the gains, netting a
0.20% loss.
Cisco did not acquire any companies today. It didn't release any new products.
The company didn't even announce a new strategic partnership. What it did
do was see its stock gain a half-point to arrest a recent series of rappels
from a height of $69 to its present position at $58 1/8.
Speaking of Cisco, I haven't decided yet whether to dress up as a router
for Hallowe'en or as an switch. The router would be the more conservative
choice, I guess, but the switch might be more, well, "be-switching." Suggestions?
Cisco reports quarterly earnings on November 5, Election Day. Right after
that comes Oxford Health. Then a week later, Borders Group.
The only Borefolio-related news I spotted today was from Borders. The company
announced the grand opening of a new superstore in Columbus, Ohio. A variety
of in-store events are planned for this week-end as part of the celebration.
Among them will be visits by balloon artiste Flaky the Clown and Clifford,
the Big Red Dog.
Let's see now. Last week here at the Ann Arbor Borders we had Joyce Carol
Oates, and this week it was Ann Beattie signing her books. Meantime down
in Columbus, they're fixing to host Flaky the Clown and Clifford. As I always
say, there are few companies that know their customers better than Borders
does.
I presume that the announcement of a grand opening in Buckeye-ville does
not account entirely for BGP's dollar loss today. More likely, that's part
of some general softness among retail stocks lately.
It appears that some institutionally-based investors consulted their calendars
a while back and discovered that there are five fewer shopping days between
Thanksgiving and Christmas this year as compared to last year. At least that's
what a story on the Dow Jones wire noted today.
In the case of Borders and its competitors, the holiday shopping season is
absolutely critical. For three fiscal quarters, the companies lose money;
then in the fourth quarter, it's make or break.
Interestingly, today's Dow Jones news story cited NatWest Securities analyst
John McKenna as suggesting that the abbreviated shopping season "could actually
be a boon" to book superstore chains. McKenna reasons that other retailers
may lower prices early to spur sales and thereby induce more people to come
out and shop. Bookstores have a distinct advantage in such situations because
"they don't have to worry about being stuck with unwanted inventory," since
publishers eat the unsold merchandise.
As someone who has transformed last-second holiday shopping into a fine art,
I can personally attest that when the pressure's on, Borders is a great place
to find gifts. What with the books, the calendars, the music, and the "new
media" (CD-ROMs and such), you can finding something for 'most anybody on
your list. And if all else fails, there's always the gift-certificate route.
At least that's the hint I keep dropping at my wife.
Transmitted: 10/30/96
Wednesday, October 30, 1996
Stock Change Bid
-------------------
BGP -1 30.13
CSL + 3/8 57.88
CSCO + 1/2 58.13
GNT + 3/8 39.38
OXHP + 1/4 44.88
PMSI - 3/8 12.63
SLR + 1/2 52.88
Day Month Year History
BORING -0.20% -4.51% 11.16% 11.16%
S&P 500 -0.09% 1.97% 12.75% 12.75%
NASDAQ +0.27% -1.68% 15.88% 15.88%
Rec'd # Security In At Now Change
2/28/96 200 Borders Gr 22.51 30.13 33.81%
2/2/96 200 Green Tree 30.39 39.38 29.58%
3/8/96 400 Prime Medi 10.07 12.63 25.39%
8/13/96 100 Carlisle C 52.65 57.88 9.92%
6/26/96 100 Cisco Syst 53.90 58.13 7.84%
1/29/96 100 Solectron 54.52 52.88 -3.03%
5/24/96 100 Oxford Hea 48.02 44.88 -6.56%
Rec'd # Security In At Value Change
2/2/96 200 Green Tree 6077.49 7875.00 $1797.51
2/28/96 200 Borders Gr 4502.49 6025.00 $1522.51
3/8/96 400 Prime Medi 4027.49 5050.00 $1022.51
8/13/96 100 Carlisle C 5264.99 5787.50 $522.51
6/26/96 100 Cisco Syst 5389.99 5812.50 $422.51
1/29/96 100 Solectron 5452.49 5287.50 -$164.99
5/24/96 100 Oxford Hea 4802.49 4487.50 -$314.99
CASH $15252.86
TOTAL $55577.86
Transmitted: 10/30/96