Boring Portfolio

Boring Portfolio Report
Tuesday, December 9, 1997
by Greg Markus (TMFBoring@aol.com)


ANN ARBOR, Mich. (Dec. 9, 1997) -- The Boring Portfolio marked the anniversary of the attack on Pearl Harbor by taking a torpedo hit amidships, its third such incident in the past two months. The previous two hits were, of course, the implosions of shares of Oxford Health Plans (Nasdaq: OXHP) and, soon thereafter, Green Tree Financial (NYSE: GNT).c Now comes Oracle (Nasdaq: ORCL), which reported last night that the second-largest software company in the world badly missed its numbers. A summary of the company's follow-up conference call is provided for your review.

Oracle's news not only clobbered that stock, sending it down nearly 30% in record-shattering trading volume, it also sent technology stocks of all stripes lower. The Nasdaq tumbled 1.88%, while the Borefolio sank nearly 3%.

Despite the damage that has been inflicted upon the once proud Borefolio, it's still managed to post a bit better than a 30% net gain in less than two years. Although this gain trails that of the S&P 500 significantly, it's perhaps better than a poke in the eye with a sharp stick. It also demonstrates the resiliency of a well-diversified portfolio against even this vivid demonstration of bad luck and perhaps no small measure of bad judgment on my part.

We'll speak more about that, and lessons learned as a result, next time.

For now, though, I've spent the last couple of hours putting my rationale down on paper -- well, on screen -- for selling the Borefolio's Oracle shares. Click here to read it.

That's all for this evening.

Oracle Sell Report


TODAY'S NUMBERS
Stock  Change    Bid
CGO   -  5/16  27.88
BGP   -  9/16  29.63
CSL   -  1/4   44.56
CSCO  -2 3/16  87.50
FCH   +  3/8   38.31
GNT     ---    29.13
ORCL  -9 7/16  22.88
PMSI  +  1/8   13.38
TDW   -1 3/4   60.94

                   Day   Month    Year  History
        BORING   -2.99%   0.17%  13.11%  30.15%
        S&P:     -0.67%   0.10%  31.73%  56.97%
        NASDAQ:  -1.88%  -0.62%  25.52%  55.68%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     29.63   163.19%
  8/13/96  200 Carlisle C    26.32     44.56    69.28%
  6/26/96  100 Cisco Syst    53.90     87.50    62.34%
   3/8/96  400 Prime Medi    10.07     13.38    32.84%
 12/23/96  100 Tidewater     46.52     60.94    30.98%
   3/5/97  150 Atlas Air     23.06     27.88    20.89%
  11/6/97  200 FelCor Sui    37.59     38.31     1.92%
   2/2/96  200 Green Tree    30.39     29.13    -4.15%
 11/21/96  150 Oracle Cor    32.43     22.88   -29.47%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49  11850.00  $7347.51
  8/13/96  200 Carlisle C  5264.99   8912.50  $3647.51
  6/26/96  100 Cisco Syst  5389.99   8750.00  $3360.01
 12/23/96  100 Tidewater   4652.49   6093.75  $1441.26
   3/8/96  400 Prime Medi  4027.49   5350.00  $1322.51
   3/5/97  150 Atlas Air   3458.74   4181.25   $722.51
  11/6/97  200 FelCor Sui  7518.00   7662.50   $144.50
   2/2/96  200 Green Tree  6077.49   5825.00  -$252.49
 11/21/96  150 Oracle Cor  4864.99   3431.25 -$1433.74

                             CASH   $3021.10
                            TOTAL  $65077.35