Boring Portfolio

Boring Portfolio Report
Monday, July 28, 1997
by Greg Markus (TMFBoring)

ANN ARBOR, Mich. (July 28, 1997) -- The Dow managed to hold onto 8 of the more than 60 points it had gained earlier in Monday's trading, but the S&P 500 and Nasdaq averages closed lower ahead of a slew of economic data that will be released this week.

The Boring Portfolio slipped lower, as well: off 0.64%. Five holdings fell, three gained, and one -- PRIME MEDICAL (Nasdaq: PMSI) -- held steady.

As for the economic data on tap, there will be at least one potentially market-moving report daily for the balance of the week, thanks to the harmonic convergence of monthly and quarterly statistics rolling in.

Tuesday morning brings the second-quarter employment cost index. Wednesday, it's June new home sales. Also slated for Wednesday is testimony to the U.S. Senate Banking Committee from Fed Chair Alan Greenspan, SEC Chair Arthur Levitt and others on the "Year-2000" computer problem. That discussion might be good for a jiggle or two in the share price of ORACLE CORP. (Nasdaq: ORCL). (Which reminds me: Oracle followers may want to click over to Upside magazine's Web site, , for their interview with Oracle icon Larry ("I'm da Man") Ellison.)

Thursday, it's the second-quarter GDP number. And Friday brings a deluge of employment, payroll, and income stats: July nonfarm payrolls, unemployment rate, June personal income and spending -- a veritable orgy of macrostats. Economists, bond gurus, stock traders, and cab drivers will all play "Where's Waldo?" trying to locate any sign of inflation in these reports. Happy hunting.

All of which leads me to conclude that this is an excellent time to get out of Dodge -- and that's exactly what I'm going to do. Right around the time that the Y2K testimony concludes on Wednesday, I'll to be launching my kayak for a morning paddle down Kauai's Na Pali coast.

If I can, I'll send you an electronic postcard.

While I'm conducting intensive research on investment possibilities in and around the greater Haena metroplex, your evening Borefolio recaps will be in the able hands of Doc Weaver in St. Louis and the usual gang of Fools back at TMF HQ in Alexandria, Va.

On Tuesday, August 5, I'll shuffle up the beach, pour a mango punch, and move the phone out to the lanai (there will be a phone, won't there??) to catch the conference calls following OXFORD HEALTH's (Nasdaq: OXHP) quarterly earnings report in the morning (Eastern time; pre-dawn Aloha time) and CISCO SYSTEMS's (Nasdaq: CSCO) report after the market closes.

Speaking of Cisco, a month without an acquisition is like a day without sunshine for the Kid, and so Cisco announced today that it was buying the Dagaz xDSL business of Integrated Network Corp. for approximately $125 million in cash and Cisco stock.

We're talking high-speed data transmission across ordinary copper phone wire here -- very hot stuff. The acquisition promises to further enhance Cisco's ability to offer end-to-end networking products and services not only to the "enterprise" but also to Sam and Sally SOHO (i.e., you and me).

In connection with the transaction, Cisco expects a one-time charge against after-tax earnings of between $0.08 and $0.11 cents per share in the first fiscal quarter of 1998 (which begins in a couple of days). In its press release, Cisco said it expects the transaction to have a neutral impact on EPS in the first year and to be accretive thereafter.

Integrated Network is based in Bridgewater, N.J. Cisco expects eventually to merge the new business into Cisco's Chelmsford, Mass. facility. All employees, including Dagaz's president and COO Dr. Dev Gupta, will become part of Cisco's "Network to User" business unit.

And with that bit of exciting news ... Aloha!

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(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 3/16  23.44
BGP   -  5/16  25.81
CSL   -  5/16  41.75
CSCO  -2 3/8   77.31
GNT   +  1/8   45.13
ORCL  -  1/4   54.44
OXHP  -2 1/8   82.88
PMSI  ---      11.50
TDW   +  1/16  48.06
                   Day   Month    Year  History
        BORING   -0.64%   8.76%  21.62%  39.95%
        S&P:     -0.22%   5.80%  26.43%  50.66%
        NASDAQ:  -0.39%   8.42%  21.11%  50.20%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     25.81   129.32%
  5/24/96  100 Oxford Hea    48.02     82.88    72.57%
  8/13/96  200 Carlisle C    26.32     41.75    58.59%
   2/2/96  200 Green Tree    30.39     45.13    48.50%
  6/26/96  100 Cisco Syst    53.90     77.31    43.44%
   3/8/96  400 Prime Medi    10.07     11.50    14.22%
 11/21/96  100 Oracle Cor    48.65     54.44    11.90%
 12/23/96  100 Tidewater     46.52     48.06     3.30%
   3/5/97  150 Atlas Air     23.06     23.44     1.64%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49  10325.00  $5822.51
  5/24/96  100 Oxford Hea  4802.49   8287.50  $3485.01
  8/13/96  200 Carlisle C  5264.99   8350.00  $3085.01
   2/2/96  200 Green Tree  6077.49   9025.00  $2947.51
  6/26/96  100 Cisco Syst  5389.99   7731.25  $2341.26
 11/21/96  100 Oracle Cor  4864.99   5443.75   $578.76
   3/8/96  400 Prime Medi  4027.49   4600.00   $572.51
 12/23/96  100 Tidewater   4652.49   4806.25   $153.76
   3/5/97  150 Atlas Air   3458.74   3515.63    $56.89

                             CASH   $7890.00
                            TOTAL  $69974.38