Boring Portfolio Report
ANN ARBOR, Mich., November 19, 1996 -- After pausing briefly yesterday, stocks
resumed their post-election push into uncharted territory. On Tuesday, the
Dow soared 51 points (+0.80%) to close at its intra-day high of 6397.60.
The S&P 500 set its own record, gaining 0.70%. The Nasdaq was just behind,
rising 0.64%.
The Boring Portfolio, with a fourth of its assets sitting in cash, rose 0.34%
to push past the $58,000 mark. It's becoming clear even to me that the market
has not heeded my suggestion that it chill for a bit. While I've been sitting
quietly in the corner nursing my club soda the past few weeks, the S&P
500's been doing the Macarena out on the patio. Perhaps it's time for Boring
to put a lampshade on his head and join the party? Or at least buy back those
Spiders I sold at the Amex pet shop a while (and 40 S&P points) ago?
Prime Medical has certainly been no party pooper this week. PMSI rose another
50 cents today on trading volume of 230,000 shares -- twice its average action.
The company announced today that it had doubled its minority stake in
Fayetteville Lithotripters, L.P., raising its interest to 41%. Physicians
own the other 59%. PMSI paid them $1.8 million in the transaction. This limited
partnership was formed in 1990 and now services 17 hospitals in Arkansas
with two mobile lithotripters.
According to the press release, this action is the continuation of a strategic
plan PMSI implemented after the acquisition of Lithotripters, Inc. earlier
this year. Said chairman Ken Shifrin, "We clearly see a benefit to increasing
our ownership in operations we currently manage in that we receive a greater
percentage of the income without incurring additional overhead."
I note in the latest First Call that PMSI's consensus rating by analysts
has increased from 1.5 to 1.3: "strong buy." (Borders has gone from 1.7 to
1.6, and Cisco from 1.3 to 1.2, by the way. The others have held fast.)
The Borefolio's other healthcare stock, Oxford Health lost a point today.
No news. Trading volume was half of what the Ox normally sees, so I hesitate
to read anything significant into the move.
Technology stocks were strong on Tuesday, and so were the Borefolio's two
tech holdings, Cisco Systems and Solectron. Solectron sneaked up a half-point
at the end of the day on good volume, while Cisco more than recovered the
ground it lost yesterday in what I was told was part of some esoteric arbitrage
deal.
Whatever. The transmission of digitized data, voice, and video through a
highly webbed network of computers (and other appliances?) is arguably the
single most significant technological advance since the commercialization
of the steam engine, and the Boring Portfolio intends to participate in it.
This is one revolution that definitely will be televised.
Tuesday, November 19, 1996
Stock Change Bid
--------------------
BGP --- 35.63
CSL + 1/8 55.50
CSCO +1 1/2 64.88
GNT - 1/4 39.38
OXHP -1 52.13
PMSI + 1/2 11.38
SLR + 1/2 58.25
Day Month Year History
BORING +0.32% 3.42% 16.12% 16.12%
S&P 500 +0.70% 5.23% 19.39% 19.39%
NASDAQ +0.64% 3.37% 21.29% 21.29%
Rec'd # Security In At Now Change
2/28/96 200 Borders Gr 22.51 35.63 58.25%
2/2/96 200 Green Tree 30.39 39.38 29.58%
6/26/96 100 Cisco Syst 53.90 64.88 20.36%
3/8/96 400 Prime Medi 10.07 11.38 12.97%
5/24/96 100 Oxford Hea 48.02 52.13 8.54%
10/15/96 100 Solectron 54.52 58.25 6.83%
8/13/96 100 Carlisle C 52.65 55.50 5.41%
Rec'd # Security In At Value Change
2/28/96 200 Borders Gr 4502.49 7125.00 $2622.51
2/2/96 200 Green Tree 6077.49 7875.00 $1797.51
6/26/96 100 Cisco Syst 5389.99 6487.50 $1097.51
3/8/96 400 Prime Medi 4027.49 4550.00 $522.51
5/24/96 100 Oxford Hea 4802.49 5212.50 $410.01
10/15/96 100 Solectron 5452.49 5825.00 $372.51
8/13/96 100 Carlisle C 5264.99 5550.00 $285.01
CASH $15435.93