Boring Portfolio

Boring Portfolio Report
Monday, June 2, 1997
by Greg Markus (TMF Boring)

ANN ARBOR, Mich. (June 2, 1997) -- The benchmark averages closed mixed on Monday, with the Dow and S&P 500 indices losing ground, but the Nasdaq managing to post a 0.32% gain.

There was nothing mixed about the Boring Portfolio's performance, however. Strength in nearly all Boring holdings propelled the portfolio to a $1325 gain in net asset value (+2.17%) and another new high: $62,339. A $1/8 descent by ATLAS AIR (Nasdaq: ATLS) constituted the Borefolio's sole loss.

Shares of BORDERS GROUP (NYSE: BGP) set the pace, rising $1 1/4 on above-average trading volume, to close at $23. The stock has more than doubled since we bought it 15 months ago.

On Friday, Borders announced plans to open nine new superstores in locations ranging all across the USA, from North Attleboro, Massachusetts, to Kona, Hawaii. According to the company, the store in Kona is scheduled to open this fall and will sit right off the Queen Kaahumanu Highway. That should enable folks to lounge in air-conditioned comfort at the espresso bar and watch 1400 or so triathlete's pedal and stride past the parking lot when the Ironman World Championships take place on the Big Island on Oct. 18.

As significant as that news may be to your humble Borefolio manager, it probably doesn't account for BGP's move today. More likely, it has something to do with whatever transpired at the annual meeting of the American Booksellers Association in Chicago this past week-end.

Among other three-letter Borefolio holdings, GREEN TREE FINANCIAL (NYSE: GNT) sprouted $1/2 as long-term interests rates eased back a bit. And TIDEWATER (NYSE: TDW) surged $2 along with other stocks in the offshore drilling and services group. Analysts at Rauscher Pierce said today that they like several issues in this group and believe that a peak in prices is still three to five years away. That forecast coincides with what industry-watchers in the Tidewater folder in The Motley Fool on AOL have been saying for a few months now.

On the four-letter front, the Borefolio tech team of CISCO SYSTEMS (Nasdaq: CSCO) and ORACLE CORP. (Nasdaq: ORCL) continues to motor along.

Cisco picked up $1/4 as part of a strong group of stocks of companies that provide Wide Area Network (WAN) equipment. A study released today by strategic research outfit Frost & Sullivan forecasts that a substantial WAN build-out will be driven by passage of the Telecommunications Reform Act of 1996, maturation of industry standards, increasing data communication and corporate communication needs, the growing need for public carriers to integrate multiple communication transport mechanisms, and overall growth in the U.S. economy.

Oracle zoomed $2 1/8 on no specific news that I could locate. The company will report its fourth quarter and fiscal year results later this month, and Oracle8 is slated for launch on June 24. It's not inconceivable that some traders are positioning themselves for what they expect could be a strong month for Oracle. Today's gain moved ORCL back into the plus column for the Borefolio, by the way.

Our healthcare holdings had a good day, as well. PRIME MEDICAL SERVICES (Nasdaq: PMSI) tacked on $1/4, while OXFORD HEALTH PLANS (Nasdaq: OXHP) hammered on $2 1/8 to close at an all-time high of $72 3/8 (bid). No news.

Fool Message Boards -- what are Fools saying?
Evening News: Presstek back in the news?
Daily Double -- How can you find the next double?
Daily Trouble -- Is there value in this beaten down stock?
Fool Four -- These giants are... monstrous.

(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.

Stock  Change    Bid
ATLS  -  1/8   28.38
BGP   +1 1/4   23.00
CSL   ---      30.50
CSCO  +  1/4   67.75
GNT   +  3/8   35.63
ORCL  +2 5/16  48.94
OXHP  +2 1/8   72.38
PMSI  +  1/4   11.38
TDW   +2       44.13
                   Day   Month    Year  History
        BORING   +2.17%  2.17%   8.35%  24.68%
        S&P:     -0.23%   5.62%  14.26%  36.15%
        NASDAQ:  +0.32%  11.42%   8.81%  34.95%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     23.00   104.33%
  5/24/96  100 Oxford Hea    48.02     72.38    50.70%
  6/26/96  100 Cisco Syst    53.90     67.75    25.70%
   3/5/97  150 Atlas Air     23.06     28.38    23.06%
   2/2/96  200 Green Tree    30.39     35.63    17.24%
  8/13/96  200 Carlisle C    26.32     30.50    15.86%
   3/8/96  400 Prime Medi    10.07     11.38    12.97%
 11/21/96  100 Oracle Cor    48.65     48.94     0.59%
 12/23/96  100 Tidewater     46.52     44.13    -5.16%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49   9200.00  $4697.51
  5/24/96  100 Oxford Hea  4802.49   7237.50  $2435.01
  6/26/96  100 Cisco Syst  5389.99   6775.00  $1385.01
   2/2/96  200 Green Tree  6077.49   7125.00  $1047.51
  8/13/96  200 Carlisle C  5264.99   6100.00   $835.01
   3/5/97  150 Atlas Air   3458.74   4256.25   $797.51
   3/8/96  400 Prime Medi  4027.49   4550.00   $522.51
 11/21/96  100 Oracle Cor  4864.99   4893.75    $28.76
 12/23/96  100 Tidewater   4652.49   4412.50  -$239.99

                             CASH   $7788.54
                            TOTAL  $62338.54