Boring Portfolio Report
SAN DIEGO, Calif. (Dec. 27) -- Greetings from the Hyatt in San Diego, home
of the 1996 Republican National Convention and, for the next few days, your
Boring correspondent.
The sun has moved behind some clouds as a bright blue tug guides a freighter
into the harbor, 28 floors beneath my window. To the right, the Tijuana trolley
jingles along on its way down to the border. Looking north, the La Jolla
hills are barely visible in the mist. I'll be heading that way tomorrow to
test ride one of the fastest bicycles on the planet -- and just maybe take
it back home with me. Tonight, it'll be Mexican food in Old Town. But first
... da stocks.
I see that as I napped through "Jack" on the flight from DTW to SAN today,
the Dow established a new all-time high, gaining 16 points (0.22%) to close
at 6561. The S&P 500 rose a point (0.13%), but the Nasdaq lost 3 (-0.23%).
As for the Boring Portfolio, it lost $75, or 0.13%, hurt by weakness in its
"tech" holdings -- especially Oracle Corp., which fell $1 1/4.
For the week, The Borefolio gained 0.56%. That compares with a full percentage
point gain for the S&P 500 but only 0.23% for the Nasdaq.
Oracle was sucked into the vacuum left as shares of software leader Computer
Associates imploded Friday. The night before, CA let it be known that quarterly
revenues would probably end up in the $1 billion to $1.1 billion range rather
than the $1.2 billion that many analysts were expecting. Earnings in line
with analysts' consensus estimate of $0.75 would nevertheless be "achievable,"
said the company.
"Drop dead," said traders, lopping 21% off the market value of CA in a matter
of hours. Let that be a lesson to any business that dares come in a bit light
on the top line in any given quarter.
Computer Associates cited "soft" revenues from European operations as being
responsible for the revenue shortfall. As Oracle shareholders know only too
well, Oracle also blamed those darn Europeans for the company missing its
quarterly targets earlier this month.
In any event, ORCL fell $1 1/4 today. At least they were in good company:
Microsoft went down, too. And BMC. And shares of a slew of other great companies
that make the stuff that turns computers into something other than expensive
doorstops.
Cisco and Solectron dipped today, also, as the entire Boring tech sector
went down for the count.
Not everything fell, though. Green Tree Financial continued to perk up nicely,
adding $3/4 today on the heels of Thursday's $1 1/8 gain. And Carlisle rose
$7/8 to $59 1/2 -- a fraction below its all-time high. Please note that Carlisle
shares split 2-for-1 on January 2. Tidewater rose, too, climbing $3/8 to
$47.
I saw no news on any Boring stocks today, but I won't let that stop me from
rattling on just a bit longer. As is my habit when I fly, I pick up a copy
of Investor's Business Daily on my way to the gate and poke around in the
stock stats to see what looks interesting. The Friday edition is particularly
useful, as it contains a section called "Your Week-end Review" listing stocks
with outstanding earnings and recent share price performance. (The utility
of IBD's editorials is another matter entirely; I'll just set that matter
aside for today.)
As I glanced down the list, there were plenty of wildcat oil drillers and
stratospherically-priced computer "help desk" stocks that don't fit my particular
tastes. But there were also a score or more stocks that might feel right
at home in the Borefolio -- and that I just might buy in '97.
There's Simpson Manufacturing, which makes screws and fasteners -- an
outstandingly strong stock. And Herman Miller, designer and fabricator of
some of the most beautiful office furniture in the world -- and one fine
business, too. And Sinter Metals, Cleveland-based maker of gears, bearings,
and sprockets for use in cars, home appliances, lawn and garden equipment,
and power tools. Then there's Miller Industries, the world's largest maker
of towtrucks. And Manitowac, which manufactures huge construction cranes
and dock loaders but also made the ice machine down the hall from my hotel
room.
Which reminds me: it's time for drinks at pool-side! Have a great week-end,
folks. See you Monday.
Friday, December 27, 1996
Stock Change Bid
--------------------
BGP --- 35.75
CSL + 7/8 59.50
CSCO - 7/8 65.63
GNT + 1/2 39.63
ORCL -1 1/4 42.75
OXHP - 1/8 57.88
PMSI --- 11.25
SLR - 3/4 54.63
Day Month Year History
BORING -0.13% -2.60% 16.62% 16.62%
S&P 500 +0.12% -0.03% 21.74% 21.74%
NASDAQ -0.23% -0.08% 24.07% 24.07%
Rec'd # Security In At Now Change
2/28/96 200 Borders Gr 22.51 35.75 58.80%
2/2/96 200 Green Tree 30.39 39.63 30.40%
6/26/96 100 Cisco Syst 53.90 65.63 21.75%
5/24/96 100 Oxford Hea 48.02 57.88 20.51%
8/13/96 100 Carlisle C 52.65 59.50 13.01%
3/8/96 400 Prime Medi 10.07 11.25 11.73%
12/23/96 100Tidewater I 46.52 47.00 1.02%
10/15/96 100 Solectron 54.52 54.63 0.18%
11/21/96 100 Oracle Cor 48.65 42.75 -12.13%
Rec'd # Security In At Value Change
2/28/96 200 Borders Gr 4502.49 7150.00 $2647.51
2/2/96 200 Green Tree 6077.49 7925.00 $1847.51
6/26/96 100 Cisco Syst 5389.99 6562.50 $1172.51
5/24/96 100 Oxford Hea 4802.49 5787.50 $985.01
8/13/96 100 Carlisle C 5264.99 5950.00 $685.01
3/8/96 400 Prime Medi 4027.49 4500.00 $472.51
12/23/96 100Tidewater I 4652.49 4700.00 $47.51
10/15/96 100 Solectron 5452.49 5462.50 $10.01
11/21/96 100 Oracle Cor 4864.99 4275.00 -$589.99
CASH $5999.08
TOTAL $58311.58
Transmitted: 12/27/96