Boring Portfolio Report
Thursday, March 27, 1997
by Gary Wall (MF
Osprey)
JACKSONVILLE, Fla. (March 27, 1997) -- The Dow was crunched Thursday, losing 140.11 points, or 2 percent, closing at 6740.59. The S&P 500 and the Nasdaq followed suit, losing 2.10 percent and 1.54 percent respectively. The Borefolio drifted with the tide and lost 1.07 percent with 7 issues down and 2 up.
Among today's Boring losers was ORACLE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORCL)") else Response.Write("(Nasdaq: ORCL)") end if %> which fell $1 1/8 to close at a bid of $39 3/8. Which reminds me...
In Gulliver's Travels, Jonathan Swift recounted the story of two petty kingdoms who warred over the silly issue of which end of a boiled egg was the proper side to break first. In this great work of satire, Swift pointed out how some issues may seem important enough to fight over but in reality are not that important at all. Things have not changed much since Swift's day, as evidenced by the so-called "Database Wars."
On one side stands Larry Ellison, CEO of Oracle. On the other is Phil White, CEO of INFORMIX <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IFMX)") else Response.Write("(Nasdaq: IFMX)") end if %>. Arch rivals, these two companies just can't seem to get along.
The first volley of the current battle was fired when Oracle and Informix squabbled over who owned the rights to the term "Universal." Supposedly, Informix's use of the label "Universal Server" for its new object-relational database product would confuse people because Oracle had already referred to their own database products, Oracle 7.3 and the soon to be released Oracle8, as "universal servers."
Boiled eggs.
The irony is that neither product is truly a "universal server." Neither one will run on all computer platforms, and neither can handle gobs and gobs of information of all varieties -- video clips, pictures or sound bites, as well as numbers and letters. If "universal" means an all-encompassing database product -- both a floor wax and a dessert topping -- then both fail that test.
Then there is the current battle over supposed technical issues involving Oracle8 and Informix's Universal Server. Larry Ellison claims that Informix's "Data Blades" are dangerous -- they can corrupt data and possibly crash the entire system. Phil White claims that Larry Ellison is distorting the facts and is jealous because Informix came to market first. "Oh yeah? Well, Informix hasn't won any big contracts with its product," sez Larry. So Phil erects a billboard next to Larry's home base in Redwood City, Calif., razzing the Oracloids. And so on.
In reality, both Oracle's and Informix's "universal servers" are simply examples of software engineering that approached the same problems from different angles. Neither product is "superior" or "inferior." They're simply different. Engineering is a balancing act, where advantages and disadvantages must be weighed and compromises made.
Once the hype dies down, Oracle8 and Informix's Universal Server will rise or fall on their own merits. And except for the pure entertainment value it provides for the trade magazines, the tiff serves no useful purpose.
Come on, guys. You're embarrassing us software geeks. How 'bout we all get back to work, huh?
There was some Boring news today.
Larry Ellison is once again talking about buying Apple Computer Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AAPL)") else Response.Write("(Nasdaq: AAPL)") end if %>. Larry is a friend of Apple co-founder Steve Jobs, who currently is not involved with this possible bid. But this fact has not stopped Silicon Valley rumor mongers -- especially since Larry said that if he does succeed in buying Apple, he would fire many current directors and top mangers including Apple Ceo Gil Amelio. Although Oracle closed down today, Apple went up 11 percent.
See what I mean by entertainment value?
In "real" Oracle news, a consortium of major computer companies, including Oracle, announced a joint standard to allow smart cards to be used on the network computer. The new standard, called "OpenCard" will allow consumers to use these little credit card-like devices, which store various personal and financial data, on network computers -- basically very cheap stripped-down PCs which rely on a central network for their procesing power and storage.
Consumers will be able to use these cards on any network computer. If everything goes according to plan, these PCs may appear in a mall near you.
There were two bits of news about CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %>. SCITEC, the Australian networking company, announced a technology agreement with Cisco to integrate their FastLane(TM) Fast Packet Switch software with Cisco IOS(TM) (Internetwork Operating System) software. Scheduled to be released in June, this integrated product will provide routing solutions for the Voice and Data integration market.
Also, NETCOM ONLINE-COMMUNICATIONS SERVICES INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NETC)") else Response.Write("(Nasdaq: NETC)") end if %> announced it would use some Cisco network components to deliver network services to small and medium-sized business customers.
In Wall Street news, Goldman Sachs initiated coverage of ATLAS AIR INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATLS)") else Response.Write("(Nasdaq: ATLS)") end if %> with a "market outperform" rating while a Lehman Brothers analyst initiated coverage of GREEN TREE FINANCIAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GNT)") else Response.Write("(NYSE: GNT)") end if %> with a mere "outperform" rating. Atlas climbed $2-1/8 on the news while Green Tree lost $1-1/4. What is the difference between these two ratings? I don't know.
Finally, this little item was widely reported by Associated Press and Reuters today: Lawrence Coss, CEO of GREEN TREE FINANCIAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GNT)") else Response.Write("(NYSE: GNT)") end if %> is one of the highest paid U.S. executives -- earning 102.4 million last year. A lot has been written in the popular media about executive compensation. But, in my opintion, Coss has done a good job and this money does not really affect the bottom line too much. Nuff said.
Well that does it for tonight. I think I'll make an omelet for dinner.
Now, how should I crack that egg?
Today's Numbers
Stock Change Bid -------------------- ATLS +2 1/8 27.50 BGP + 1/8 40.25 CSL - 3/8 30.38 CSCO -1 1/4 51.00 GNT -1 1/4 35.50 ORCL -1 1/8 39.38 OXHP -1 5/8 61.13 PMSI - 1/8 10.50 TDW - 1 7/8 47.50
Day Month Year History
BORING -1.07% -0.72% -0.74% 14.22%
S&P: -2.10% -2.14% 4.47% 24.49%
NASDAQ: -1.54% -4.54% -3.22% 20.03%
Rec'd # Security In At Now Change
2/28/96 200 Borders Gr 22.51 40.25 78.79%
5/24/96 100 Oxford Hea 48.02 61.13 27.28%
3/5/97 150 Atlas Air 23.06 27.50 19.26%
2/2/96 200 Green Tree 30.39 35.50 16.82%
8/13/96 200 Carlisle C 26.32 30.38 15.38%
3/8/96 400 Prime Medi 10.07 10.50 4.28%
6/26/96 100 Cisco Syst 53.90 51.00 -5.38%
11/21/96 100 Oracle Cor 48.65 39.38 -19.06%
12/23/96 100 Tidewater 46.52 47.50 2.10%
Rec'd # Security In At Value Change
2/28/96 200 Borders Gr 4502.49 8050.00 $3547.51
5/24/96 100 Oxford Hea 4802.49 6112.50 $1310.01
2/2/96 200 Green Tree 6077.49 7100.00 $1022.51
8/13/96 200 Carlisle C 5264.99 6075.00 $810.01
3/5/97 150 Atlas Air 3458.74 4125.00 $666.26
3/8/96 400 Prime Medi 4027.49 4200.00 $172.51
6/26/96 100 Cisco Syst 5389.99 5100.00 -$289.99
11/21/96 100 Oracle Cor 4864.99 3937.50 -$927.49
12/23/96 100 Tidewater 4652.49 4750.00 $97.51
CASH $7660.41
TOTAL $57110.41