Boring Portfolio Report
Thursday, August 21, 1997
by Greg Markus (TMF
Boring)
ANN ARBOR, Mich. (August 21, 1997) -- Does anybody believe these guys?
In the Reuter's market summary I read: "Peter Cardillo, director of research at Westfalia Investments, said profit-taking may be seen early. But with no real economic news until early September, he expected the Dow to stay within a trading range of between 7,900 and 8,200. 'I think we could test the old highs over the next week but I don't think we are ready to make new highs,' he said."
What rubbish. This kind of jibberish isn't Boring at all. Does an investor even care about such prognostications? This one doesn't. It was indeed a slow news day.
The market retreated today because more people wanted to sell stock than wanted to buy. Call it profit taking, say it is because bonds went lower, blame it on El Nino or, say it is because of PMS... Pricey Market Syndrome. Whatever... the majority of stocks closed lower today.
Speaking of PMS, there was good news today on the PMS front -- that is, the Premenstrual Syndrome front. In a press release from Women's Health America (Women's Health America Group) I learn that "PMS won't reach the level in young women that it did in their mothers" and that "no one has to live with PMS." That could lift your spirits on a down market day.
As for El Nino, it was featured on Good Morning America today as forecasters predict precipitation of historic proportions for the west coast. El Nino was blamed for skyrocketing cocoa prices as well. It looks like the price of chocolate is going up. So much for lifted spirits...
In the face of the downdraft the Borefolio held it's own relative to the indices, if not to our wallet. Six stocks fell, two rose and one (PRIME MEDICAL SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PMSI)") else Response.Write("(Nasdaq: PMSI)") end if %>) closed unchanged (shocker there eh?).The portfolio declined 0.97% while the S&P dropped 1.52%. Ever so gradually the Boring portfolio is sneaking up on the indices. The only thing holding the portfolio back is a 10% cash position, and Greg is brewing up some ideas on how to use that cash. Stay tuned.
There continues to be a paucity of news on our stocks. I was interested to find out that CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> and ORACLE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORCL)") else Response.Write("(Nasdaq: ORCL)") end if %> are two of the most widely followed stocks in the market. 103 analysts follow Oracle and 99 follow Cisco. Let's just say these stocks aren't undiscovered gems although gems they have been for the Borefolio.
Today Oracle announced that they were partnering with Fujitsu "to collaborate in providing technology solutions to corporations and public institutions in sectors such as finance and banking, government, manufacturing and retail."
Oracle closed off $1 and Cisco was off $7/8.
There was significant news on our TIDEWATER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TDW)") else Response.Write("(NYSE: TDW)") end if %> holding. The company is exploring "altenatives for monetizing it's investment" in natural gas compression. Let's just say they want to sell or spin off the division.
Taking a glance at Greg's latest Tidewater conference call summary and the initial buy report I see that the compression segment is a laggard with relatively flat profits. Tidewater wants to focus its capital and its efforts on its marine transportation services. This sounds like a positive move to me. After being up most of the day Tidewater closed down $1/16.
Which stocks were up you ask? ATLAS AIR GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATLS)") else Response.Write("(Nasdaq: ATLS)") end if %> was up
$1/8 and CARLISLE COMPANIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CSL)") else Response.Write("(NYSE: CSL)") end if %> was up $1/4. There was no
news from either company. I guess that in today's market no news was good
news.
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Stock Change Bid ATLS + 1/8 28.88 BGP - 1/4 23.75 CSL + 1/4 42.75 CSCO - 7/8 77.44 GNT - 13/16 44.69 ORCL -1 39.94 OXHP -2 1/2 76.75 PMSI --- 11.56 TDW - 1/16 50.88
Day Month Year History
BORING -0.97% -1.02% 22.24% 40.66%
S&P: -1.52% -3.07% 24.88% 48.81%
NASDAQ: -1.35% 0.81% 24.45% 54.35%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 23.75 110.99%
8/13/96 200 Carlisle C 26.32 42.75 62.39%
5/24/96 100 Oxford Hea 48.02 76.75 59.81%
2/2/96 200 Green Tree 30.39 44.69 47.06%
6/26/96 100 Cisco Syst 53.90 77.44 43.67%
3/5/97 150 Atlas Air 23.06 28.88 25.23%
11/21/96 150 Oracle Cor 32.43 39.94 23.14%
3/8/96 400 Prime Medi 10.07 11.56 14.84%
12/23/96 100 Tidewater 46.52 50.88 9.35%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 9500.00 $4997.51
8/13/96 200 Carlisle C 5264.99 8550.00 $3285.01
5/24/96 100 Oxford Hea 4802.49 7675.00 $2872.51
2/2/96 200 Green Tree 6077.49 8937.50 $2860.01
6/26/96 100 Cisco Syst 5389.99 7743.75 $2353.76
11/21/96 150 Oracle Cor 4864.99 5990.63 $1125.64
3/5/97 150 Atlas Air 3458.74 4331.25 $872.51
3/8/96 400 Prime Medi 4027.49 4625.00 $597.51
12/23/96 100 Tidewater 4652.49 5087.50 $435.01
CASH $7890.00
TOTAL $70330.63