Boring Portfolio Report
Friday, August 15, 1997
by Greg Markus (TMF
Boring)
ANN ARBOR, Mich. (August 15, 1997) -- The Dow tumbled 247 points on this "double witching" Friday. That was the benchmark average's second-largest point loss in history, behind only the 508-point crash of Oct. 19, 1987. Of course in percentage terms the '87 crash measured a breathtaking 22.6%, whereas today's selloff was a "merely" 3.11%.
The S&P 500 lost 24 points, or 2.59%, while the Nasdaq fell 25, or 1.55%.
If you feel distinctly less exuberant than you did a week or two ago, you're probably not alone: since setting an all-time high on Aug. 6, the Dow has fallen 6.8%, as Neo-Nifty Fifty stocks such as GILLETTE (NYSE: G), PROCTER & GAMBLE (NYSE: PG) and COCA COLA (NYSE: KO) adjust to perhaps more plausible valuations.
Perhaps, schmerhaps. Look, they're great stocks, of wonderful companies. And a decade from now -- heck, probably even a year from now -- few folks will recall today's selloff. But the valuations on the stocks in the top tier of the S&P 500 were (and perhaps still are) a tad excessive.
Will lagging small and midcap stocks, such as those that constitute much of the Boring Portfolio, finally get the favorable attention they merit? We'll all find out together.
On Friday, at any rate, the Borefolio lost "only" 1.36%. For the week, the damage to our little port was 2.03%, as compared with 2.28% for the Nasdaq and 3.51% for the S&P 500.
An $11/16 resurgence by TIDEWATER (NYSE: TDW) and a $3/8 rehabilitation of OXFORD HEALTH PLANS (Nasdaq: OXHP) stood in marked relief against losses in the seven other Borefolio holdings.
Even BORDERS GROUP (NYSE: BGP) fell off the shelf, losing $3/4 despite beating analysts' expectations handily by posting a penny per share gain for the seasonally slow July quarter. Our summary of Borders's follow-up telephonic conference, held Thursday evening, is posted in the Conference Calls section of The Motley Fool.
Despite the advantage of having nearly 12% of the Borefolio's value sitting in a money market fund on a day -- or week -- like this past one, I remain eager to invest that balance in what I perceive to be some solid opportunities on both the "long" and "short" sides of the equities market. Look for a new purchase soon -- perhaps in the coming week.
In the meantime, I intend to make the most of one of the all-too-few remaining
weekends in this summer. I hope you enjoy your weekend, as well.
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Stock Change Bid ATLS - 1/4 26.88 BGP - 3/4 22.38 CSL - 1/4 42.56 CSCO -2 1/16 74.88 GNT -1 43.13 ORCL -2 55.75 OXHP + 3/8 75.25 PMSI - 1/8 10.63 TDW + 11/16 49.69
Day Month Year History
BORING -1.36% -4.56% 17.86% 35.63%
S&P: -2.59% -5.61% 21.61% 44.91%
NASDAQ: -1.55% -1.99% 20.99% 50.06%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 22.38 98.78%
8/13/96 200 Carlisle C 26.32 42.56 61.68%
5/24/96 100 Oxford Hea 48.02 75.25 56.69%
2/2/96 200 Green Tree 30.39 43.13 41.92%
6/26/96 100 Cisco Syst 53.90 74.88 38.91%
3/5/97 150 Atlas Air 23.06 26.88 16.55%
11/21/96 100 Oracle Cor 48.65 55.75 14.59%
12/23/96 100 Tidewater 46.52 49.69 6.80%
3/8/96 400 Prime Medi 10.07 10.63 5.52%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 8950.00 $4447.51
8/13/96 200 Carlisle C 5264.99 8512.50 $3247.51
5/24/96 100 Oxford Hea 4802.49 7525.00 $2722.51
2/2/96 200 Green Tree 6077.49 8625.00 $2547.51
6/26/96 100 Cisco Syst 5389.99 7487.50 $2097.51
11/21/96 100 Oracle Cor 4864.99 5575.00 $710.01
3/5/97 150 Atlas Air 3458.74 4031.25 $572.51
12/23/96 100 Tidewater 4652.49 4968.75 $316.26
3/8/96 400 Prime Medi 4027.49 4250.00 $222.51
CASH $7890.00
TOTAL $67815.00
