Boring Portfolio Report
Wednesday, September 3, 1997
by Mark Weaver, MD (MWEAV)
ANN ARBOR, Mich. (Sept. 3, 1997) -- The Boring Portfolio added to its record performance of yesterday with a nice 0.92% gain, besting both the S&P 500 and the Nasdaq. The Borefolio is again closing in on the S&P's year-to-date return.
In last night's report Greg Markus stated that CISCO SYSTEMS (Nasdaq: CSCO) hadn't purchased another company. Well, about fifteen minutes after his report was filed Cisco announced that it had purchased DAGAZ technologies. The purchase is expected to have no impact on earnings in the first year but to be accretive thereafter.
From the press release I learned that "DAGAZ products enhance existing networks, offering scalable, cost-effective, media-independent solutions for passage of broadband multimedia applications such as voice, video and data to end users." Sounds like a good fit for Cisco.
On top of this announcement came the news that Everen Securities had initiated coverage of Cisco with an intermediate-term market perform rating and a long-term outperform rating. Price targets of $80 intermediate term and $92 long term were announced along with the ratings. Everen joins the crowd in coverage of Cisco, one of the ten most followed US stocks. Cisco closed up $5/8.
In other Borefolio news, GREEN TREE FINANCIAL (NYSE: GNT) coverage was initiated by CS First Boston with a buy rating. The stock was up $7/8 in spite of a dreary bond market. Even though I would expect Green Tree to be interest sensitive, in fact it seems to correlate weakly, if at all, with activity in the bond market.
Winners on no news included ATLAS AIR (Nasdaq: ATLS), BORDERS GROUP (NYSE: BGP), CARLISLE COMPANIES (NYSE: CSL), and OXFORD HEALTH PLANS (Nasdaq: OXHP). Oxford in particular has stabilized after recent weakness.
On a sports note, I had a chance to sit in the stands at Busch Stadium last night and witness a very Boring home run, the longest ever at that ballpark. The 504 foot clout was launched by Mark McGwire, a very Boring ballplayer if there ever was one. Since being traded to the Cardinals, McGwire has fifteen hits, ten of them home runs. He is truly one of the great power hitters of all time.
In professional sports these days it has become the norm for batters to pose after they hit a long one, football players to dance in the end-zone and taunt opponents, mediocre basketball players to wave fingers in opponents faces, and on and on. These showboating displays are usually put on by the "nearly great," not the true superstars.
So, when McGwire hit this shot did he stand there and watch it? No way. He trotted around the bases spending no time showing up the other team or puffing himself up. He didn't need to. His home run did all the talking. When he was asked about the record setting blast after the game, he said that he didn't care about records like that, he was just doing his job. How exceptionally Boring.
It's just too bad that he did it against my White Sox, but oh well...
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 + 9/16 28.06 BGP +1 1/16 25.25 CSL + 11/16 44.00 CSCO + 5/8 77.81 GNT + 7/8 46.00 ORCL - 5/16 38.50 OXHP +1 3/8 75.63 PMSI - 5/8 13.00 TDW - 11/16 54.81
Day Month Year History BORING +0.92% 2.90% 25.14% 44.00% S&P: +0.03% 3.16% 25.26% 49.26% NASDAQ: +0.01% 1.95% 25.34% 55.46% Rec'd # Security In At Now Change 2/28/96 400 Borders Gr 11.26 25.25 124.32% 8/13/96 200 Carlisle C 26.32 44.00 67.14% 5/24/96 100 Oxford Hea 48.02 75.63 57.47% 2/2/96 200 Green Tree 30.39 46.00 51.38% 6/26/96 100 Cisco Syst 53.90 77.81 44.36% 3/8/96 400 Prime Medi 10.07 13.00 29.11% 3/5/97 150 Atlas Air 23.06 28.06 21.70% 11/21/96 150 Oracle Cor 32.43 38.50 18.71% 12/23/96 100 Tidewater 46.52 54.81 17.81% Rec'd # Security In At Value Change 2/28/96 400 Borders Gr 4502.49 10100.00 $5597.51 8/13/96 200 Carlisle C 5264.99 8800.00 $3535.01 2/2/96 200 Green Tree 6077.49 9200.00 $3122.51 5/24/96 100 Oxford Hea 4802.49 7562.50 $2760.01 6/26/96 100 Cisco Syst 5389.99 7781.25 $2391.26 3/8/96 400 Prime Medi 4027.49 5200.00 $1172.51 11/21/96 150 Oracle Cor 4864.99 5775.00 $910.01 12/23/96 100 Tidewater 4652.49 5481.25 $828.76 3/5/97 150 Atlas Air 3458.74 4209.38 $750.64 CASH $7890.00 TOTAL $71999.38