Boring Portfolio Report
Tuesday, September 2, 1997
by Greg Markus (TMFBoring)
ANN ARBOR, Mich. (Sept. 2, 1997) -- Since you almost certainly know it by now, I won't bother to note that the Dow enjoyed its biggest single-session point gain in history on this first trading day of what is historically the toughest month of the year for stocks. The DJIA soared 257 points, or 3.38%. The S&P 500 cleared the 3% hurdle, as well, gaining 28 points, while the Nasdaq rose "only" 31, or 1.94%.
A comforting monthly report from the National Association of Purchasing Managers no doubt encouraged traders. The Dow was already up sharply before the report was released at 10 AM, however, so that's not the whole story -- not that it really matters in the scheme of things.
The Boring Portfolio increased its net asset value by 1.97% to establish a new high at $71,343. That's $13 above the previous high-water mark, set back on August 4. Eight of nine holdings advanced today, while the ninth, ATLAS AIR (Nasdaq: ATLS), cruised steadily at an altitude of $27 1/2.
TIDEWATER (NYSE: TDW) stock surged $3 on good volume of over 700,000 shares to establish a record high of its own, at $55 1/2. The business reporters in the newspapers and on TV tell me that money is now moving into undervalued small-cap and mid-cap stocks. All I have to do is look at TDW to see that. With a net margin of 20%, a return on equity of 30%, and a stock price that even at this new high is less than 13-times projected earnings of $4.38 per share for calendar-year 1998 (based on data in First Call), Tidewater is still a great bargain, in my opinion.
In Value Line's opinion, too. The latest (Aug. 29) installment of that great, boring source of investment information includes an updated report on Tidewater. Based on the stock's historic tendency to trade at 11.5-times cash flow per share, TDW could roll up tomorrow to around $64 and still not be overvalued. Head over to your public library and check it out yourself: page 1876.
After busting out for a 17.4% gain last week, PRIME MEDICAL (Nasdaq: PMSI) tacked on $1/8 today, to close at a bid of $13 5/8. Trading volume continues to be well above-average: 244,800 shares today.
The "Heard on the Street" column of today's Wall Street Journal reported that bookseller BARNES & NOBLE (NYSE: BKS) intends to slow somewhat its expansion of superstores as it ramps up its Internet commerce capabilities. BKS slipped $7/16. As BORDERS GROUP (NYSE: BGP) execs informed us in last month's conference call, the Borders Website will absolutely be up and selling in time for the holiday season -- and without any slowdown in their plan for superstore openings. BGP gained $3/8 today.
Quiet CARLISLE COMPANIES (NYSE: CSL) advanced $1 1/8. Last week, your Borefolio recap stated that Carlisle had acquired Tilden Corp., a privately held company located in Lenexa, Kansas that manufactures lawn and garden tires and wheels. The folks at Carlisle e-mailed me and asked that I correct the record to note that Carlisle and Tilden have signed a letter of intent, but the details are still being negotiated. According to the press release, the transaction is expected to close "in the next few weeks."
Apologies for jumping the gun there, Carlisle.
Speaking of acquisitions, CISCO SYSTEMS (Nasdaq: CSCO), whose stock
rose $1 7/8, did not report buying another company today. But hey, the week
has just started.
Drip Portfolio --
Fool Message Boards -- Speak your mind!
Evening News -- All the news, early.
Daily Double -- More room to run?
Daily Trouble -- Value in this butchered stock?
The Fool Portfolio -- Fool Port trying to catch the S&P.
Fool Four -- 23% annualized.
(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 --- 27.50 BGP + 3/8 24.19 CSL +1 1/8 43.31 CSCO +1 7/8 77.19 GNT +1 3/16 45.13 ORCL + 3/4 38.81 OXHP +1 3/16 74.25 PMSI + 1/8 13.63 TDW +2 15/16 55.50
Day Month Year History BORING +1.97% 0.41% 24.00% 42.69% S&P: +3.13% -2.80% 25.22% 49.22% NASDAQ: +1.94% 1.52% 25.33% 55.44% Rec'd # Security In At Now Change 2/28/96 400 Borders Gr 11.26 24.19 114.88% 8/13/96 200 Carlisle C 26.32 43.31 64.53% 5/24/96 100 Oxford Hea 48.02 74.25 54.61% 2/2/96 200 Green Tree 30.39 45.13 48.50% 6/26/96 100 Cisco Syst 53.90 77.19 43.21% 3/8/96 400 Prime Medi 10.07 13.63 35.32% 11/21/96 150 Oracle Cor 32.43 38.81 19.67% 12/23/96 100 Tidewater 46.52 55.50 19.29% 3/5/97 150 Atlas Air 23.06 27.50 19.26% Rec'd # Security In At Value Change 2/28/96 400 Borders Gr 4502.49 9675.00 $5172.51 8/13/96 200 Carlisle C 5264.99 8662.50 $3397.51 2/2/96 200 Green Tree 6077.49 9025.00 $2947.51 5/24/96 100 Oxford Hea 4802.49 7425.00 $2622.51 6/26/96 100 Cisco Syst 5389.99 7718.75 $2328.76 3/8/96 400 Prime Medi 4027.49 5450.00 $1422.51 11/21/96 150 Oracle Cor 4864.99 5821.88 $956.89 12/23/96 100 Tidewater 4652.49 5550.00 $897.51 3/5/97 150 Atlas Air 3458.74 4125.00 $666.26 CASH $7890.00 TOTAL $71343.13
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