Boring Portfolio

Boring Portfolio Report
Tuesday, November 19, 1996

by Greg Markus (MF Boring)

ANN ARBOR, Mich., November 19, 1996 -- After pausing briefly yesterday, stocks resumed their post-election push into uncharted territory. On Tuesday, the Dow soared 51 points (+0.80%) to close at its intra-day high of 6397.60. The S&P 500 set its own record, gaining 0.70%. The Nasdaq was just behind, rising 0.64%.

The Boring Portfolio, with a fourth of its assets sitting in cash, rose 0.34% to push past the $58,000 mark. It's becoming clear even to me that the market has not heeded my suggestion that it chill for a bit. While I've been sitting quietly in the corner nursing my club soda the past few weeks, the S&P 500's been doing the Macarena out on the patio. Perhaps it's time for Boring to put a lampshade on his head and join the party? Or at least buy back those Spiders I sold at the Amex pet shop a while (and 40 S&P points) ago?

Prime Medical has certainly been no party pooper this week. PMSI rose another 50 cents today on trading volume of 230,000 shares -- twice its average action.

The company announced today that it had doubled its minority stake in Fayetteville Lithotripters, L.P., raising its interest to 41%. Physicians own the other 59%. PMSI paid them $1.8 million in the transaction. This limited partnership was formed in 1990 and now services 17 hospitals in Arkansas with two mobile lithotripters.

According to the press release, this action is the continuation of a strategic plan PMSI implemented after the acquisition of Lithotripters, Inc. earlier this year. Said chairman Ken Shifrin, "We clearly see a benefit to increasing our ownership in operations we currently manage in that we receive a greater percentage of the income without incurring additional overhead."

I note in the latest First Call that PMSI's consensus rating by analysts has increased from 1.5 to 1.3: "strong buy." (Borders has gone from 1.7 to 1.6, and Cisco from 1.3 to 1.2, by the way. The others have held fast.)

The Borefolio's other healthcare stock, Oxford Health lost a point today. No news. Trading volume was half of what the Ox normally sees, so I hesitate to read anything significant into the move.

Technology stocks were strong on Tuesday, and so were the Borefolio's two tech holdings, Cisco Systems and Solectron. Solectron sneaked up a half-point at the end of the day on good volume, while Cisco more than recovered the ground it lost yesterday in what I was told was part of some esoteric arbitrage deal.

Whatever. The transmission of digitized data, voice, and video through a highly webbed network of computers (and other appliances?) is arguably the single most significant technological advance since the commercialization of the steam engine, and the Boring Portfolio intends to participate in it. This is one revolution that definitely will be televised.


TODAY'S NUMBERS
Stock  Change    Bid
--------------------
BGP   ---      35.63
CSL   +  1/8   55.50
CSCO  +1 1/2   64.88
GNT   -  1/4   39.38
OXHP  -1       52.13
PMSI  +  1/2   11.38
SLR   +  1/2   58.25
                   Day   Month    Year  History
        BORING   +0.32%   3.42%  16.12%  16.12%
        S&P 500  +0.70%   5.23%  19.39%  19.39%
        NASDAQ   +0.64%   3.37%  21.29%  21.29%

    Rec'd   #  Security     In At       Now    Change

  2/28/96  200 Borders Gr    22.51     35.63    58.25%
   2/2/96  200 Green Tree    30.39     39.38    29.58%
  6/26/96  100 Cisco Syst    53.90     64.88    20.36%
   3/8/96  400 Prime Medi    10.07     11.38    12.97%
  5/24/96  100 Oxford Hea    48.02     52.13     8.54%
 10/15/96  100 Solectron     54.52     58.25     6.83%
  8/13/96  100 Carlisle C    52.65     55.50     5.41%



    Rec'd   #  Security     In At     Value    Change

  2/28/96  200 Borders Gr  4502.49   7125.00  $2622.51
   2/2/96  200 Green Tree  6077.49   7875.00  $1797.51
  6/26/96  100 Cisco Syst  5389.99   6487.50  $1097.51
   3/8/96  400 Prime Medi  4027.49   4550.00   $522.51
  5/24/96  100 Oxford Hea  4802.49   5212.50   $410.01
 10/15/96  100 Solectron   5452.49   5825.00   $372.51
  8/13/96  100 Carlisle C  5264.99   5550.00   $285.01


                             CASH  $15435.93


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