Boring Portfolio Report
Wednesday, July 2, 1997
by Greg Markus (TMF Boring)
ANN ARBOR, Mich. (July 2, 1997) -- Apparently, the market hadn't entirely factored in that the Fed would leave interest rates alone this time around. Benchmark stock averages soared in the late afternoon and closed at or near their intraday highs. The Dow rose 73 (0.95%) to 7795, a point shy of its all-time high. The S&P 500 gained 13 (+1.46%) to close above the 900 mark, while the Nasdaq picked up 17 (1.21%) to end the session at 1456, a record.
Thursday morning brings the monthly stats on nonfarm payrolls. Surveys indicate the market is anticipating that June payrolls rose by around 225,000. The unemployment rate is expected to have held steady at 4.8%.
With many traders expected to take the day off Thursday and with U.S. stock markets closing at 1PM EDT until Monday, an appreciable departure from those expectations could make for an interesting morning.
At least for some folks. I hope to be at the local pool by the time the news breaks.
Now to your Boring recap. The Boring Portfolio gained 1.26% Wednesday, with winners outnumbering losers five to four.
Yesterday, BORDERS GROUP (NYSE: BGP) fell $1 3/4 on no news, as two large blocks of Borders stock changed hands. Today, BGP rose $1 3/8 in even heavier trading than the day before. Again, no news. Stocks go down, stocks go up. Good stocks of good companies like Borders go up a lot more than down.
Speaking of good stocks of good companies, shares of OXFORD HEALTH PLANS (Nasdaq: OXHP) gained $1 1/4 to close at a bid of $75 5/8, just shy of a record. In this case there was relevant news.
FPA MEDICAL MANAGEMENT (Nasdaq: FPAM) announced that it will acquire Health Partners Inc. in a stock swap. Health Partners is the largest physician practice management organization (PPO) in New York with over 103,000 HMO members.
This deal affects Oxford, because Oxford is a shareholder of Health Partners and its largest payor. As part of the scheme, Oxford will enter into a 10-year strategic agreement with FPA under which FPA will provide physician services to Oxford's members in existing markets and provide a framework for expansion to new markets. (Read that last part again.)
I expect, but have not confirmed, that as a major shareholder in Health Partners, the deal will also provide a windfall of a few pennies per share to Oxford.
Stocks of oil services companies continued higher as Texas crude held above the $20 mark. More than that, news from various corners of the globe indicates that offshore drilling activity is stronger than ever. TIDEWATER (NYSE: TDW) added $15/16 to yesterday's $13/16 advance -- once again in above-average trading activity -- to close at $45 3/4. For a few moments today, the stock was in the black for the Borefolio, which is where an oil services stock oughta be.
Networking stocks are back in favor. CISCO SYSTEMS (CSCO) gained $2 3/16 to a bid of $70 1/2.
On the downside, GREEN TREE FINANCIAL (NYSE: GNT) shed $7/16 despite the favorable interest rate environment. News of slow revenues for manufactured homes companies continues to weigh on the stock.
Green Tree is slated to report results for its June quarter in about two weeks. Rather than speculate, I'm happy to bide my time and get the news straight from the company then.
Boards -- what are Fools saying?
Evening News -- Big movers, up and down.
Daily Double -- How can you find the next double?
Daily Trouble -- Is there value in this beaten down stock?
The Fool Portfolio -- AOL, Iomega, 3Com... and more.
Fool Four -- Trying to catch the market.
(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 - 1/2 32.75 BGP +1 3/8 23.75 CSL - 3/16 35.44 CSCO +2 3/16 70.50 GNT - 7/16 35.88 ORCL - 5/16 48.19 OXHP +1 1/4 75.63 PMSI + 1/8 10.50 TDW + 15/16 45.75
Day Month Year History BORING +1.26% 0.52% 12.40% 29.34% S&P: +1.46% 2.13% 22.05% 45.43% NASDAQ: +1.21% 0.94% 12.75% 39.83% Rec'd # Security In At Now Change 2/28/96 400 Borders Gr 11.26 23.75 110.99% 5/24/96 100 Oxford Hea 48.02 75.63 57.47% 3/5/97 150 Atlas Air 23.06 32.75 42.03% 8/13/96 200 Carlisle C 26.32 35.44 34.62% 6/26/96 100 Cisco Syst 53.90 70.50 30.80% 2/2/96 200 Green Tree 30.39 35.88 18.06% 3/8/96 400 Prime Medi 10.07 10.50 4.28% 11/21/96 100 Oracle Cor 48.65 48.19 -0.95% 12/23/96 100 Tidewater 46.52 45.75 -1.67% Rec'd # Security In At Value Change 2/28/96 400 Borders Gr 4502.49 9500.00 $4997.51 5/24/96 100 Oxford Hea 4802.49 7562.50 $2760.01 8/13/96 200 Carlisle C 5264.99 7087.50 $1822.51 6/26/96 100 Cisco Syst 5389.99 7050.00 $1660.01 3/5/97 150 Atlas Air 3458.74 4912.50 $1453.76 2/2/96 200 Green Tree 6077.49 7175.00 $1097.51 3/8/96 400 Prime Medi 4027.49 4200.00 $172.51 11/21/96 100 Oracle Cor 4864.99 4818.75 -$46.24 12/23/96 100 Tidewater 4652.49 4575.00 -$77.49 CASH $7788.54 TOTAL $64669.79