The Motley Fool: The Boring Portfolio

COLLEGE PARK, MD (Nov. 7, 1997) -- The number of job-holding Americans increased even more than expected in October, sending the unemployment rate down to 4.7%, its lowest level in 24 years. For reasons that may once have made sense (fears of wage-pull inflation) but are open to doubt nowadays, the news contributed to a sell-off in U.S. stocks. That the Japanese stock market fell more than 4% to hit a two-year low only added to the tension here.

The Dow, which was off nearly 200 points during the session, regained about half its losses to close down 102, or 1.33%. The S&P 500 dropped 1.12% and the Nasdaq, 1.30%. Friday's losses trimmed the weekly gains to 0.55% for the Nasdaq and 1.41% for the S&P 500.

As for the Boring Portfolio, it suffered a proportionately smaller daily drop and larger weekly gain, falling 0.93% on Friday yet still managing a 2.56% advance over the past five sessions.

That gain helped the Borefolio recover from damage inflicted by the 62% crash in shares of OXFORD HEALTH PLANS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: OXHP)") else Response.Write("(Nasdaq: OXHP)") end if %> the week before. We sold OXHP on Tuesday after the company reported its quarterly results, such as they were. A summary of Oxford's follow-up conference call is available here in The Motley Fool for the strong of stomach and the seeker of cheap thrills -- well, fairly expensive thrills for the Borefolio, actually. The current issue of Business Week provides a well-researched and well-written story on the Oxford debacle, as well.

BORDERS GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BGP)") else Response.Write("(NYSE: BGP)") end if %> was the sole advancing issue among Borefolio holdings Friday, edging up $3/8 to close as $29 1/16. The stock shot up better than 12% this week after the company preannounced break-even results for its October quarter -- three-cents ahead of analysts' expectations -- and its Internet commerce plans.

CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> fell $1 3/8 Friday. Earlier in the week, CSCO rose after the company reported better-than-expected quarterly earnings of $0.59 and announced a three-for-two stock split. You're invited to read our synopsis of Cisco's conference call. CSCO gained $1 1/2 on the week. Fans of the Kid will be interested in Fortune magazine's interview with Cisco CEO John Chambers.

ORACLE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORCL)") else Response.Write("(Nasdaq: ORCL)") end if %> dipped $3/8. An item in this morning's Wall Street Journal reported that APPLE COMPUTER <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AAPL)") else Response.Write("(Nasdaq: AAPL)") end if %> may partner with Oracle by producing network computers, to be available in mid-1998. Oracle would supply the client-server software required to make the thin-client approach work in corporate settings. Apple co-founder and acting CEO Steve Jobs is expected to make a formal announcement on Monday.

Borefolio newcomer FELCOR SUITE HOTELS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FCH)") else Response.Write("(NYSE: FCH)") end if %> eased $3/8 in moderate trading. The hotel world watches with interest the tussle between STARWOOD LODGING <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HOT)") else Response.Write("(NYSE: HOT)") end if %> and HILTON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HLT)") else Response.Write("(NYSE: HLT)") end if %> to see which one will acquire ITT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ITT)") else Response.Write("(NYSE: ITT)") end if %> and its Sheraton hotels. Starwood has upped its bid, while Hilton's decided to try the unfriendly takeover route -- hoping to get ITT shareholders to oust pro-Starwood board members in a proxy vote this coming Wednesday.

Meantime, I monitor all this from my Maryland hotel room ... and not one of FelCor's all-suite properties, alas.

TODAY'S NUMBERS

Stock  Change    Bid
ATLS  -  1/2   27.88
BGP   +  3/8   29.06
CSL   -  3/8   44.38
CSCO  -1 3/16  83.50
FCH   -  3/8   37.25
GNT   -  11/16 43.94
ORCL  -  3/8   34.94
PMSI  -  1/8   12.88
TDW   -2 1/4   66.06

                   Day   Month    Year  History
        BORING   -0.93%   2.56%  20.42%  38.57%
        S&P:     -1.12%   1.41%  25.21%  49.21%
        NASDAQ:  -1.30%   0.55%  24.12%  53.93%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     29.06   158.19%
  8/13/96  200 Carlisle C    26.32     44.38    68.57%
  6/26/96  100 Cisco Syst    53.90     83.50    54.92%
   2/2/96  200 Green Tree    30.39     43.94    44.59%
 12/23/96  100 Tidewater     46.52     66.06    41.99%
   3/8/96  400 Prime Medi    10.07     12.88    27.87%
   3/5/97  150 Atlas Air     23.06     27.88    20.89%
 11/21/96  150 Oracle Cor    32.43     34.94     7.72%
  11/6/97  200 FelCor Sui    37.59     37.25    -0.90%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49  11625.00  $7122.51
  8/13/96  200 Carlisle C  5264.99   8875.00  $3610.01
  6/26/96  100 Cisco Syst  5389.99   8350.00  $2960.01
   2/2/96  200 Green Tree  6077.49   8787.50  $2710.01
 12/23/96  100 Tidewater   4652.49   6606.25  $1953.76
   3/8/96  400 Prime Medi  4027.49   5150.00  $1122.51
   3/5/97  150 Atlas Air   3458.74   4181.25   $722.51
 11/21/96  150 Oracle Cor  4864.99   5240.63   $375.64
  11/6/97  200 FelCor Sui  7518.00   7450.00   -$68.00

                             CASH   $3021.10
                            TOTAL  $69286.73