Boring Portfolio Report
Friday, August 22, 1997
by Greg Markus (TMF Boring)

ANN ARBOR, Mich. (August 22, 1997) -- A twitchy end to a twitchy week. Merrill Lynch analyst Tom Kurlak downgraded INTEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> to a near-term "neutral" and slashed his 1998 EPS forecast by $0.70 to $4.90. The influential semiconductor analyst also cut TEXAS INSTRUMENTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TXN)") else Response.Write("(NYSE: TXN)") end if %> to "neutral" from "accumulate."

That sent the Nasdaq reeling Friday morning -- off as much as 38 points, or 2.4%, in the early going. The Dow and S&P 500 suffered almost as badly, with the Dow off as much as 178 points. Late-afternoon buying substantially erased the losses, however. The Dow closed just 6 points lower, the S&P off a mere 1.5 points (-0.16%), and the Nasdaq down by 9 (-0.54%).

Perhaps some folks noticed that even after slashing his '98 earnings estimate on Intel, Kurlak was still above his peers' consensus estimate of around $4.75?

Boring stocks jiggled about in generally light trading, ending the day off 0.55%. Seven of nine holdings fell, although none consequentially.

For the week, the Borefolio's net asset value swelled by 3.14%, fueled by a 10% rise in shares of ORACLE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORCL)") else Response.Write("(Nasdaq: ORCL)") end if %>. ORCL split 3-for-2 on Monday. The Borefolio's gain compared with increases of 2.52% and 2.35% for the S&P 500 and Nasdaq, respectively.

Oracle rose $7/8 Friday. Needham initiated covered of the world's #2 software company with "strong buy" rating.

BORDERS GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BGP)") else Response.Write("(NYSE: BGP)") end if %> was our only other gainer on Friday, inching up $1/16 but with good volume of just under a half-million shares.

The latest issue of Value Line includes an updated report on the Ann Arbor-based bookseller. In his review, analyst Maurice Levenson writes that "Borders' well-executed superstore concept, coupled with selected book discounts, will enable it to generate substantial sales and earnings growth out to the end of the decade."

How substantial? Well, how about a price target of $54 3/4 -- or 130% share price appreciation -- in three to five years?

That'll be right about the time my daughter Jamie graduates from high school (Class of 2001). Some of those Borders long-term capital gains just might come in handy then.

Finally, TIDEWATER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TDW)") else Response.Write("(NYSE: TDW)") end if %> continued to tread water, easing $9/16. TDW increased fractionally for the week to close at $50 5/16.

Did you know that oil services company BAKER HUGHES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BHI)") else Response.Write("(NYSE: BHI)") end if %> compiles a weekly survey of drilling rig operations in North America and a monthly survey of international drilling activity? Baker Hughes reported Friday that the number of active rigs in the Gulf of Mexico increased by one this week, to 122. The Baker Hughes web site is packed with historical data for those who might want to explore the relationship between Tidewater's share price and measures of domestic and international rig activity.

Another useful site is that of Offshore Data Services, Inc. Offshore Data collects information on rigs under contract, whether actively drilling or not, which is slightly different from the criteria Baker Hughes employs. Offshore Data reported Friday that the number of offshore rigs under contract worldwide declined by one from the week before, to 577. That's out of a total fleet of 605, for a utilization rate of 95.4%.

All in all, sounds to me like a whole lotta drillin' goin' on.

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Stock  Change    Bid
ATLS  -  7/8   28.00
BGP   +  1/16  23.81
CSL   -  1/16  42.69
CSCO  - 11/16  76.75
GNT   - 11/16  44.00
ORCL  +  7/8   40.81
OXHP  -  1/8   76.63
PMSI  -  5/16  11.25
TDW   -  9/16  50.31

                  Day   Month    Year  History
        BORING   -0.55%  -1.56%  21.56%  39.89%
        S&P:     -0.16%  -3.22%  24.68%  48.57%
        NASDAQ:  -0.50%   0.31%  23.83%  53.58%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     23.81   111.55%
  8/13/96  200 Carlisle C    26.32     42.69    62.16%
  5/24/96  100 Oxford Hea    48.02     76.63    59.55%
   2/2/96  200 Green Tree    30.39     44.00    44.80%
  6/26/96  100 Cisco Syst    53.90     76.75    42.39%
 11/21/96  150 Oracle Cor    32.43     40.81    25.84%
   3/5/97  150 Atlas Air     23.06     28.00    21.43%
   3/8/96  400 Prime Medi    10.07     11.25    11.73%
 12/23/96  100 Tidewater     46.52     50.31     8.14%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49   9525.00  $5022.51
  8/13/96  200 Carlisle C  5264.99   8537.50  $3272.51
  5/24/96  100 Oxford Hea  4802.49   7662.50  $2860.01
   2/2/96  200 Green Tree  6077.49   8800.00  $2722.51
  6/26/96  100 Cisco Syst  5389.99   7675.00  $2285.01
 11/21/96  150 Oracle Cor  4864.99   6121.88  $1256.89
   3/5/97  150 Atlas Air   3458.74   4200.00   $741.26
   3/8/96  400 Prime Medi  4027.49   4500.00   $472.51
 12/23/96  100 Tidewater   4652.49   5031.25   $378.76

                             CASH   $7890.00
                            TOTAL  $69943.13