The Boring Portfolio

Boring Portfolio Report
Friday, November 15, 1996

by Greg Markus (MF Boring)

ANN ARBOR, Mich., November 15, 1996 -- Late afternoon sell programs trimmed gains on the Big Board on Friday, but the Dow and S&P 500 both managed to continue their thrusts into record territory, nonetheless.

The Dow rose 35 points, 8 1/8 of them belonging to IBM, which received favorable comments from Merrill Lynch. Option expirations-enhanced trading topped 526 million shares. For the week, the Dow rose 128 points, or 2.1%, while the S&P gained nearly 1%.

Action on the Nasdaq was even more frenetic. Volume totaled 639 million shares. The Naz was up for most of the day until computerized selling (of computerized stocks) dropped the index 7 points. For the week, the Nasdaq gained a third of a percentage point in value.

The Boring Portfolio was true to its name. On Friday, the Borefolio managed a 0.28% gain in net asset value, helped by strength in Borders Group and the hint of a recovery for Prime Medical. For the week, the Borefolio gained about enough to cover costs of dinner and a movie: up $50, or 0.09%. Apparently, the market didn't hear me a few weeks ago when I announced that it was overvalued and shifted the Borefolio 27% into cash.

Compressed holiday shopping season or not, analysts appear to have liked Borders' conference call yesterday (my summary of which is available in the Boring Port behind the Borders Group link up there in the top right corner). BGP picked up $1 3/8 on decent volume of around 300,000 shares. I happened across some Q3 numbers from rival Barnes & Noble (NYSE: BKS) today, and I thought it might be instructive to compare them with Borders':

                                 BKS     BGP
EPS                             -$.08   -$.06
Superstore sales                + 36%   + 42%      
Superstore same-store sales     +4.5%   +8.6%
Mall same-store sales           -1.3%   -0.2%

When same-store sales in the crucial superstores category are growing nearly twice as fast at Borders as at B&N, that's a big deal, in my opinion.

Elsewhere, I notice that Health Management Systems, a provider of management services to hospitals and health-care providers, lost a third of its value in the course of a few hours today. That did nothing to help other healthcare stocks, and the Borefolio's Oxford Health fell $ 5/8.

As for the Borefolio's other healthcare stock, Prime Medical Services is finally receiving some favorable attention from brokers. PMSI pushed past the $11 mark earlier today, only to fade later with most other healthcare issues. The bid price gained a notch, though, to $10 1/8.

Finally, Cisco announced today that Gordon Astles, 45, "has been named vice president of the Americas." Wow! And I was unaware that the Americas had even held elections! Oops, forgot to read the rest of the press release. It seems that Mr. Astles is "responsible for Cisco's sales operations in Canada, Mexico, Central America and South America." Well, that's still a pretty neat job.

Prior to his new position, Mr. Astles was vice president of Europe, Middle East and Africa for Cisco. I guess he likes it better here in America. Ooh! I hear a song coming on....

Networking's best in Amer-i-ca!

Routers don't rest in Amer-i-ca!

ATM's hot in Amer-i-ca!

Switches we got in Amer-i-ca!

On that questionable note, I leave you to enjoy your week-end. See you Monday!

Today's Numbers

Stock  Change    Bid
--------------------
BGP   +1 3/8   36.63
CSL   -  1/8   55.25
CSCO  -  1/2   64.75
GNT   +  3/8   39.63
OXHP  -  5/8   53.38
PMSI  +  1/8   10.13
SLR   -1 1/2   58.38

                   Day   Month    Year  History
        BORING   +0.28%   3.15%  15.82%  15.82%
        S&P 500  +0.24%   4.59%  18.66%  18.66%
        NASDAQ   -0.67%   3.30%  21.22%  21.22%

    Rec'd   #  Security     In At       Now    Change

  2/28/96  200 Borders Gr    22.51     36.63    62.69%
   2/2/96  200 Green Tree    30.39     39.63    30.40%
  6/26/96  100 Cisco Syst    53.90     64.75    20.13%
  5/24/96  100 Oxford Hea    48.02     53.38    11.14%
 10/15/96  100 Solectron     54.52     58.38     7.06%
  8/13/96  100 Carlisle C    52.65     55.25     4.94%
   3/8/96  400 Prime Medi    10.07     10.13     0.56%



    Rec'd   #  Security     In At     Value    Change

  2/28/96  200 Borders Gr  4502.49   7325.00  $2822.51
   2/2/96  200 Green Tree  6077.49   7925.00  $1847.51
  6/26/96  100 Cisco Syst  5389.99   6475.00  $1085.01
  5/24/96  100 Oxford Hea  4802.49   5337.50   $535.01
 10/15/96  100 Solectron   5452.49   5837.50   $385.01
  8/13/96  100 Carlisle C  5264.99   5525.00   $260.01
   3/8/96  400 Prime Medi  4027.49   4050.00    $22.51


                             CASH  $15435.93
                            TOTAL  $57910.93



Transmitted: 11/15/96