The Motley Fool: The Boring Portfolio

ANN ARBOR, Mich. (Feb.6, 1998) -- Five of six Boring holdings rose Friday, pushing the portfolio's net asset value ahead by 1.47%. That daily performance easily beat those of the benchmark stock averages. For the week, however, the Borefolio's respectable 2.38% gain lagged that of the S&P 500 and Nasdaq. We gotta get that $13,000 invested!

Telecommunications leader Andrew Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ANDW)") else Response.Write("(Nasdaq: ANDW)") end if %> was our sole loser Friday, falling $3/8. In light of the drubbing that wireless handset manufacturer Qualcom <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QCOM)") else Response.Write("(Nasdaq: QCOM)") end if %> suffered, I'll interpret ANDW's small loss as an affirmation of that stock's excellent value.

On the upside, Atlas Air <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CGO)") else Response.Write("(NYSE: CGO)") end if %> climbed $11/16 ahead of its quarterly earnings report scheduled for Wednesday morning. With Friday's gain, Atlas ascended better than 5% this week and moved back into the black for the Borefolio. As for next week, analysts are anticipating that Atlas will post fourth-quarter profits somewhere in the range of $0.32 to $0.38 per share, according to First Call. The consensus forecast is $0.35.

At least as important as how Atlas fared in the quarter already ended is the guidance that Atlas executives provide regarding the company's prospects in the coming year. As you may recall, Atlas slumped in 1997, not from the weight of the world on its shoulders but from problems it had for much of the year with five cargo planes it was flying -- sort of -- under lease from Federal Express <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FDX)") else Response.Write("(NYSE: FDX)") end if %>.

The leases on those five flying lemons have expired, and they are presumably about to be returned to FedEx, soon to be replaced by brand new Boeing <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BA)") else Response.Write("(NYSE: BA)") end if %> 747-400 freighters. Atlas investors -- or at least this one -- will want an update on the situation.

We'll also be looking for an update on whether Atlas is suffering any sniffles from the "Asian flu." A good chunk of Atlas's business involves transporting cargo to and from the Far East. Much of that business is with Taiwan, which enjoys one of the healthier Asian economies; but Atlas also has some exposure to some dragging dragons, such as Thailand.

There's nothing dragging at Cisco Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> or Carlisle Companies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CSL)") else Response.Write("(NYSE: CSL)") end if %>, that's for sure. Both companies reported results for their most recent fiscal quarters, both blew past analysts' earnings forecasts, and both saw their stock touch new highs during the week.

You can check out our summary of Cisco's follow-up conference call for additional details about the Kid's performance. Cisco's Website has the quarterly earnings press release, plus a ton of other info.

As for Carlisle, between the company's nine-page press release and the notes provided in Thursday's Boring recap, you'll get a pretty good portrait of how well things are going for this quintessentially Boring business.

Cisco closed up $1 9/16 to $65 15/16 Friday, while Carlisle rose $1 1/16 to $47 3/8.

Last, Borders Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BGP)") else Response.Write("(NYSE: BGP)") end if %> picked up $3/4, and FelCor Suites Hotel <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FCH)") else Response.Write("(NYSE: FCH)") end if %> gained $5/8. Borders was recently added to Value Line's "Performance" portfolio, by the way.

Perhaps befitting a company in the business of providing restful rooms to weary travelers, FelCor's share price has snoozed through the winter. It'll wake up eventually. Meantime, the stock's 6% dividend provides a comforting pillow.

The Winter Olympics is underway! Earnings season or no, this investor's attention will be focused much more on Nagano for the next couple of weeks than it will be on Wall Street.

TODAY'S NUMBERS

Stock  Change    Bid 
 ANDW  -  3/8   27.88 
 CGO   +  11/16 23.94 
 BGP   +  3/4   32.75 
 CSL   +1 1/16  47.38 
 CSCO  +1 9/16  65.94 
 FCH   +  5/8   37.25

                   Day   Month    Year  History 
         BORING   +1.47%   2.48%  -1.03%  24.53% 
         S&P:     +0.89%   3.28%   4.33%  62.87% 
         NASDAQ:  +1.04%   4.63%   7.89%  62.77% 
  
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     32.75   190.95% 
   6/26/96  150 Cisco Syst    35.93     65.94    83.50% 
   8/13/96  200 Carlisle C    26.32     47.38    79.96% 
   1/21/98  200 Andrew Cor    26.09     27.88     6.84% 
    3/5/97  150 Atlas Air     23.06     23.94     3.81% 
   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  13100.00  $8597.51 
   6/26/96  150 Cisco Syst  5389.99   9890.63  $4500.64 
   8/13/96  200 Carlisle C  5264.99   9475.00  $4210.01 
   1/21/98  200 Andrew Cor  5218.00   5575.00   $357.00 
    3/5/97  150 Atlas Air   3458.74   3590.63   $131.89 
  
   11/6/97  200 FelCor Sui  7518.00   7450.00   -$68.00 
  
                              CASH  $13182.97 
                             TOTAL  $62264.22