Boring Portfolio

Boring Portfolio Report
Monday, April 8, 1996

By Bob Lukas (MF Dogwind)

ANN ARBOR, MI, April 8, 1996 -- I'm back at my keyboard after spending a glorious week on the island of Providenciales, a banana-shaped hunk of coral possessing one of the loveliest beaches in the entire Caribbean.

Knowing that the Borefolio was in the able hands of MFs Fletch, Rails, Wheels, Rigs, and Dogwind (he's a "vet" from Michigan State, which explains everything), I kicked back and celebrated the April Fool's holiday in fine style. After my morning swim and breakfast, I would occasionally don my flip-flops and meander out to the main road, where stood one of the few public telephones within a mile of my digs. There, with the occasional motor scooter zipping by, I'd converse with my broker via toll-free number, catching up on what was happening back in the world of stocks. "All is well," he would tell me, whereupon I would flip-flop back to the beach and contemplate lunch.

I mention all this more to take my mind off current events than for any other reason. Greeting me upon my return to the US of A, was the revelation that the Unabomber and I are fellow University of Michigan alumni. Cheesh! And now on my first day back on the job, the market decided it would attempt another one of those triple-digit nosedives in response to .... well, whatever.

Which brings us to today's Borefolio action: we managed to lose less than the S&P 500, percentage-wise, but a bit more than the NASDAQ. Semiconductor-related issues were surprisingly robust today, possibly in anticipation of a somewhat more chipper Semiconductor Industry monthly book-to-bill ratio (which was originally scheduled to appear today, but will be reported tomorrow instead). Our little Lam managed the sole gain in the Boring Portfolio today: up two bucks.

More than compensating on the down side, however, was LCS Industries. I actually managed to get through to LCSI's Chief Financial Officer late this afternoon, one Pat Frustaci by name, to try to find out what the deal is with the stock lately.

Mr. Frustaci was limited in what he could disclose, given that the quarter has just ended and the earnings report has yet to be released (expected first week of May). I did learn, however, that the "mystery analyst" whose ratings are reported by First Call is a guy at a firm called Select Equities, in New York. I also learned that this analyst has received no guidance whatsoever from LCSI, and as best as Mr. Frustaci could recall, the analyst had never even spoken with him.

Back when I was preparing my review of LCSI, I spoke briefly with the fellow at Select Equities (I came across his name in a news story), but he declined any comment, explaining that he sells his information to institutional investors and thus couldn't very well give it away for free.

There are no institutionally-based analysts that currently cover LCSI, although Mr. Frustaci suggested that this situation may change. Given this limited information, and the apparently similarly limited information upon which Select Equities bases its recommendations, I see no reason to alter my position on LCSI -- at least not until the earnings report appears.

I continue to research new acquisitions for the Borefolio and hope to make a new buy later in the week.

Transmitted: 4/8/96

BGP - 5/8 ...GNT - 7/8 ...LRCX +2
...LCSI -2 1/2 ...PMSI - 1/2 ...TXI - 3/8 ...
                   Day   Month    Year  History
        BORING   -1.67%  -0.08%  -1.61%  -1.61%
        S&P 500  -1.77%  -0.20%   3.64%   3.64%
        NASDAQ   -1.12%   0.39%   6.22%   6.22%
    Rec'd  #   Security     In At       Now    Change
   3/8/96 400 Prime Medic    10.07     13.00    29.10%
  2/28/96 200 Borders Gro    22.51     27.38    21.61%
  1/29/96 100 Texas Indus    54.52     66.00    21.05%
   2/2/96 200 Green Tree     30.39     33.75    11.07%
  3/25/96 200 LCS Industr    26.14     21.50   -17.75%
  2/23/96 100 Lam Researc    48.02     37.50   -21.91%
    Rec'd  #   Security      Cost     Value    Change
  2/28/96 200 Borders Gro  4502.49   5475.00   $972.51
   2/2/96 200 Green Tree   6077.49   6750.00   $672.51
  3/25/96 200 LCS Industr  5227.49   4300.00  -$927.49
  2/23/96 100 Lam Researc  4802.49   3750.00 -$1052.49
   3/8/96 400 Prime Medic  4027.49   5200.00  $1172.51
  1/29/96 100 Texas Indus  5449.99   6600.00  $1150.01
                             CASH  $17117.60
                            TOTAL  $49192.60