Boring Portfolio

Boring Portfolio Report
Friday, May 16, 1997
by Greg Markus (TMF Boring)


ANN ARBOR, Mich. (May 16, 1997) -- The benchmark Dow, S&P 500, and Nasdaq Composite indices all tumbled Friday as attention turns to the FOMC meeting on May 20 and the possibility of another increase in interest rates. The Dow lost 139 points (1.9%), while the S&P and Nasdaq fell 1.4% and 1.0%, respectively.

The Boring Portfolio lost ground, as well -- suffering only its second daily loss so far this month. Altogether, the Borefolio surrendered 0.9%, as five stocks declined, three advanced, and one -- ATLAS AIR (Nasdaq: ATLS) -- was unchanged.

Despite Friday's loss, the Boring Portfolio managed to post slightly better than a 2% gain for the week. That compares to +0.6% for the S&P 500 and +0.4% for the Nasdaq.

TIDEWATER (NYSE: TDW) announced Friday that it had completed the acquisition of O.I.L. Ltd. from Ocean Group, of the United Kingdom. The purchase price was approximately $535 million. With that transaction, Tidewater adds 100 vessels to the 650 it already had, further increasing the company's dominant position in providing marine services to the offshore oil and gas industry. Shares of Tidewater gained $3/8 to close at $40 3/4.

GREEN TREE FINANCIAL (NYSE: GNT) snapped its streak at five consecutive gains as the stock slipped $1/8 to close at $331/4. GNT was trading higher for all but the last few minutes of Friday's session, when it finally succumbed to a case of interest-rate jitters, along with financial services stocks generally. Trading in GNT was active, as it has been pretty much all month.

PRIME MEDICAL SERVICES (Nasdaq: PMSI) slipped $1/4 in light trading. On Wednesday the company announced it had acquired a 38% interest in a limited partnership that operates a mobile lithotripter in Tennessee and Georgia. The purchase price for Prime's share of the partnership was $3.47 million in cash. That works out to approximately 3.5 times Prime's portion of the partnership's annual revenues, which sounds not unreasonable to me.

ORACLE (Nasdaq: ORCL) fell $1 5/8, along with many other software stocks. The culprit -- or victim, depending upon one's point of view -- was NETSCAPE (Nasdaq: NSCP). Netscape lost 15% of its market capitalization in a matter of hours after the wire services publicized some cautionary comments the company made in its latest 10-Q filing. The fact that those caveats had already been aired in discussions with analysts appears not to have mattered much -- as noted in the Friday Fool Evening News.

Speaking of Netscape, after the market closed, Oracle and Netscape announced they would hold a joint press conference Monday at the Sofitel Hotel near Oracle's home base in Redwood Shores, Calif. The reason for the press conference was not disclosed, which will only help to accelerate the rumor mill.

Beyond that, there's precious little to say about Borefolio stocks. There was no other news I spotted on Friday, and trading in most Boring issues was light, unexceptional and, well, boring.

That suits me just fine, because -- one way or the other -- next week probably will not be.


(c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.


TODAY'S NUMBERS
Stock  Change    Bid
ATLS  ---      27.88
BGP   -  1/2   20.38
CSL   +  1/4   30.38
CSCO  -1 1/8   61.50
GNT   -  1/8   33.25
ORCL  -1 1/2   44.38
OXHP  +  1/4   63.38
PMSI  -  3/8   9.88
TDW   +  3/8   40.75
                   Day   Month    Year  History
        BORING   -0.90%   4.33%   0.23%  15.33%
        S&P:     -1.44%   3.55%  12.02%  33.48%
        NASDAQ:  -0.95%   6.34%   3.85%  28.80%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     20.38    81.01%
  5/24/96  100 Oxford Hea    48.02     63.38    31.96%
   3/5/97  150 Atlas Air     23.06     27.88    20.89%
  8/13/96  200 Carlisle C    26.32     30.38    15.38%
  6/26/96  100 Cisco Syst    53.90     61.50    14.10%
   2/2/96  200 Green Tree    30.39     33.25     9.42%
   3/8/96  400 Prime Medi    10.07      9.88    -1.92%
 11/21/96  100 Oracle Cor    48.65     44.38    -8.79%
 12/23/96  100 Tidewater     46.52     40.75   -12.41%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49   8150.00  $3647.51
  5/24/96  100 Oxford Hea  4802.49   6337.50  $1535.01
  8/13/96  200 Carlisle C  5264.99   6075.00   $810.01
  6/26/96  100 Cisco Syst  5389.99   6150.00   $760.01
   3/5/97  150 Atlas Air   3458.74   4181.25   $722.51
   2/2/96  200 Green Tree  6077.49   6650.00   $572.51
   3/8/96  400 Prime Medi  4027.49   3950.00   -$77.49
 11/21/96  100 Oracle Cor  4864.99   4437.50  -$427.49
 12/23/96  100 Tidewater   4652.49   4075.00  -$577.49

                             CASH   $7660.41
                            TOTAL  $57666.66