Boring Portfolio Report
Tuesday, June 18, 1996
ANN ARBOR, MI, June 18, 1996 -- Folks who participate in The Motley Fool tend to be partial to stocks of companies in the so-called technology sector -- and the tech-ier, the better. A lot of us online investors can't seem to get enough of companies with corporate descriptions that read like: "Microdigisoft is a leading supplier of integrated open-systems development solutions for the global internetworking and semiconductor industries."
Well, a lot of the Microdigisofts got their chips chopped today, as the NASDAQ lost more than two percent in value in the course of a few hours. Meanwhile, the S&P 500 slipped approximately one-half a percentage point.
As for the Boring Portfolio, it won whatever prize they give out for losing the least, as it declined $75 -- or 0.14% in net value. On a day like today, it paid (or, at least, cost less) not to be holding Microdigisoft.
So what to do on such an ugly day? Quite possibly, nothing. After all, we know that Friday is on of those four-times-per-year "triple witching" days, and markets tend to be volatile in the run-up to Friday. Today also had its share of bad news on the earnings front, as a number of companies with four-letter stock symbols warned about slowing profits. (By the way, would someone please point me to the investors who were not yet aware that semiconductor makers were in the midst of a rough patch?) This, too, shall pass.
In any event, fairly-valued stocks of high quality tech companies (Cisco, H-P, US Robotics, Texas Instruments, et al.) sold off right along with the overvalued and/or no-earnings wonders (insert name of your favorite hype-stock here). I've personally been searching high and low for a great stock in this sector to add to the Borefolio, and today's sell-off just adds that much more opportunity. Once the dust clears, it could be time to go shopping.
As for the current Borefolio holdings, not a whole lot happened today (again). A few stocks went up by fractions of points, a few stocks went down by comparable amounts. Yawn. Our only news today came out of the Twin Cities, where Green Tree Financial announced that Edward L. Finn will join the company as Executive VP and CFO on July 1.
Prior to joining Green Tree, Mr. Finn served with the accounting firm of Ernst & Young for 26 years, most recently as managing partner in the Providence office. Finn took degrees in law and taxation from Boston College and Boston University after graduating from Notre Dame. (Why am I not surprised that a fella named Ed Finn might be a Fightin' Irish?) The press release also notes that "Mr. Finn is active in a number of community and social organizations, including the United Way, YMCA and Junior Achievement." Perfect.
Actually, there was another little note about Green Tree today -- tucked away in a corner of the very last page of the Wall Street Journal. If you read last night's Borefolio recap, you may recall that I noted the WSJ story about investors' increasing appetite for asset-backed securities, i.e., the stuff that Green Tree bundles together and offers for sale. Well, today's tiny WSJ item noted that Green Tree "is planning another series of deals, including issues backed by home-equity loans, home improvement loans and manufactured housing loans, a person familiar with the situation said." The manufactured home issue alone could run to a half billion bucks, according to the story.
Hey, folks, I know it's boring. It's SUPPOSED to be boring. Boring stuff like that has enabled Green Tree to grow its loan portfolio to $15 billion and its share price eight-fold over the past four years!
BGP - 5/8 ...GNT + 1/4 ...LCSI - 1/4 ...OXHP - 5/8 ... PMSI + 1/2 ...SHAW - 1/2 ...TXI + 5/8 ...
*Scroll down or expand screen for full portfolio accounting
Day Month Year History
BORING -0.14% -2.76% 3.75% 3.75%
S&P 500 -0.48% -1.07% 6.49% 6.49%
NASDAQ -2.04% -4.86% 13.65% 13.65%
Rec'd # Security In At Now Change
3/8/96 400 Prime Medic 10.07 16.75 66.34%
2/28/96 200 Borders Gro 22.51 35.00 55.49%
1/29/96 100 Texas Indus 54.52 65.50 20.13%
2/2/96 200 Green Tree 30.39 30.88 1.61%
5/24/96 100 Oxford Heal 48.02 42.88 -10.71%
4/12/96 300 The Shaw Gr 18.84 16.38 -13.08%
3/25/96 200 LCS Industr 26.14 14.75 -43.57%
Rec'd # Security Cost Value Change
3/8/96 400 Prime Medic 4027.49 6700.00 $2672.51
2/28/96 200 Borders Gro 4502.49 7000.00 $2497.51
1/29/96 100 Texas Indus 5449.99 6550.00 $1100.01
2/2/96 200 Green Tree 6077.49 6175.00 $97.51
5/24/96 100 Oxford Heal 4802.49 4287.50 -$514.99
4/12/96 300 The Shaw Gr 5652.49 4912.50 -$739.99
3/25/96 200 LCS Industr 5227.49 2950.00 -$2277.49