The Motley Fool: The Boring Portfolio

Boring Portfolio Report
Wednesday, September 24, 1997
by Greg Markus (TMFBoring)

ANN ARBOR, Mich. (Sept.24, 1997) -- Late-day selling sent the Dow and the S&P 500 down three-quarters of a percentage point. This time the Nasdaq fell with them, by 0.59%, in heavy trading. Interestingly (I guess that's the word for it), the losses in equities occurred despite a strong bond market: the yield on the long bond slipped to 6.32%.

The Boring Portfolio had a bit more trimmed off the record high it established Monday, shedding 0.22%. Borefolio losers edged winners five to four.

ORACLE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORCL)") else Response.Write("(Nasdaq: ORCL)") end if %> shares rose $9/16 after CEO Larry Ellison rallied the troops at Oracle's OpenWorld conference in Los Angeles. Ellison said that earnings growth for the rest of Oracle's 1998 fiscal year (ending May) should outpace the company's first quarter growth.

Excluding charges associated with two recent acquisitions, Oracle's per-share earnings rose 33% in the August quarter relative to a year ago, and analysts' current consensus projection is for that same level of growth to continue for the full fiscal year, according to First Call.

Even though Oracle already owns the lion's share of the global database market, Ellison said his company continues to gain share. According to a Reuters story, Ellison also said he was "certain" that rival database maker INFORMIX <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IFMXE)") else Response.Write("(Nasdaq: IFMXE)") end if %> could not survive its current problems.

Shares of Informix continued to fall Wednesday. The stock has lost one-third of its value in the past three sessions after Informix said it expects to restate 1996 and 1995 earnings, reducing them significantly. The Nasdaq has also initiated action to de-list the company.

CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> stock backed off $1 7/16. Speaking in Paris at an international technology conference, Cisco Chief Technology Officer Ed Kozel said that the Predator of Tasman Drive is looking to buy small European-based companies in order to acquire their engineering talent and products.

According to a Reuters report, Patrick McGovern, chairman of International Data Group, told conference participants that European companies are showing "an alarming lack of interest in the potential of computers" and are in danger of falling behind in the information technology race.

Turning to ATLAS AIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATLAS)") else Response.Write("(Nasdaq: ATLAS)") end if %>, after dipping and then stabilizing at a slightly lower altitude following recent news that company founder and CEO Michael Chowrdy would resume his former position of president and oversee day-to-day operations, ATLS rose $1 1/4 in above-average trading Wednesday. I could find no news that might account for the rise.

The Borefolio navy kept pace with its air force, as shares of TIDEWATER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TDW)") else Response.Write("(NYSE: TDW)") end if %> advanced $3/4.

Other Boring stocks declined fractionally. Nothing remarkable, and no apparent news. Back to sleep.

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TODAY'S NUMBERS

Stock  Change    Bid
ATLS  +1 1/4   27.63
BGP   +  3/16  28.13
CSL   -  3/8   45.69
CSCO  -1 7/16  74.56
GNT   -  5/16  46.75
ORCL  +  9/16  37.88
OXHP  -  13/16 76.13
PMSI  -  9/16  13.75
TDW   +  3/4   58.56

                   Day   Month    Year  History
        BORING   -0.22%   5.59%  28.40%  47.76%
        S&P:     -0.78%   5.00%  27.50%  51.94%
        NASDAQ:  -0.59%   6.31%  30.70%  62.10%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     28.13   149.86%
  8/13/96  200 Carlisle C    26.32     45.69    73.55%
  5/24/96  100 Oxford Hea    48.02     76.13    58.51%
   2/2/96  200 Green Tree    30.39     46.75    53.85%
  6/26/96  100 Cisco Syst    53.90     74.56    38.34%
   3/8/96  400 Prime Medi    10.07     13.75    36.56%
 12/23/96  100 Tidewater     46.52     58.56    25.87%
   3/5/97  150 Atlas Air     23.06     27.63    19.81%
 11/21/96  150 Oracle Cor    32.43     37.88    16.78%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49  11250.00  $6747.51
  8/13/96  200 Carlisle C  5264.99   9137.50  $3872.51
   2/2/96  200 Green Tree  6077.49   9350.00  $3272.51
  5/24/96  100 Oxford Hea  4802.49   7612.50  $2810.01
  6/26/96  100 Cisco Syst  5389.99   7456.25  $2066.26
   3/8/96  400 Prime Medi  4027.49   5500.00  $1472.51
 12/23/96  100 Tidewater   4652.49   5856.25  $1203.76
 11/21/96  150 Oracle Cor  4864.99   5681.25   $816.26
   3/5/97  150 Atlas Air   3458.74   4143.75   $685.01

                             CASH   $7890.00
                            TOTAL  $73877.50