Boring Portfolio

Boring Portfolio Report
Wednesday, November 05, 1997
by Greg Markus (TMFBoring@aol.com)


ANN ARBOR, Mich. (Nov. 5, 1997) -- The Boring Portfolio continued to work its way out of the hole created by the implosion of former holding OXFORD HEALTH PLANS (Nasdaaq: OXHP). We sold our 100 shares of OXHP yesterday. Altogether, the Borefolio increased its net asset value by better than 1% on Wednesday, easily outpacing modest gains in the benchmark stock averages.

I'm almost done with my summary of Oxford's conference call, which followed the company's report of third quarter results on Tuesday morning, and I hope to have that posted later tonight. Then it's on to summarizing the CISCO SYSTEMS (Nasdaq: CSCO) call. Those phone sessions lasted nearly two hours apiece, so preparing the summaries is taking a bit longer than usual.

As you probably know by now, last night Cisco reported that it took in $1.87 billion in revenues in its October quarter, earning $0.59 per share. The earnings number beat the Street's consensus by a penny. Cisco also announced a three-for-two stock split, to take effect next month.

Analysts' cheered the news, a number of them hiking their earnings forecasts for the Kid and raising their recommendations today. In response, CSCO paced the Nasdaq by surging $1 15/16 in active trading to close at a bid of $85 3/8.

The big Borefolio winner today was not Cisco, however, it was our other "C" stock -- CARLISLE COMPANIES (NYSE: CSL). CSL gained $2 11/16, or 6.3%, recovering from some recent softness in the share price. Just as there was no news to account for the decline, so there was no news to explain today's rise.

As pleased as we are with today's results, we're even more pleased to announce the newest member of the Boring Portfolio: FELCOR SUITES INC. (NYSE: FCH). We invite you to read our "buy" report. But you might want to have a cool drink and a snack handy, as it's a lengthy -- but we hope interesting and informative -- read.

FelCor is a real estate investment trust, or REIT. It makes its money the same way that top-hatted swell in the game of Monopoly does, by owning hotels ... all over the board. Neither Mark Weaver nor I knew a whole lot about REITs when we began our review of FelCor, so we called on our friends in the Real Estate section of The Motley Fool to help us out in our due diligence -- and help they did. Thanks especially to Michael Dowd (TMF Yorick).

We intend to further our education about REITs, the hotel industry, and FelCor as we follow this company through what we hope will be a long and profitable relationship.

Anyhow, enjoy the write-up, and please pass along any comments to us!


TODAY'S NUMBERS
Stock  Change    Bid
ATLS  +  3/16  28.56
BGP   -  1/16  28.69
CSL   +2 11/16 45.44
CSCO  +1 15/16 85.38
GNT   +  13/16 45.00
ORCL  -  7/16  36.25
PMSI  -  1/4   13.00
TDW   -  3/16  69.44
                   Day   Month    Year  History
        BORING   +1.02%   4.36%  22.54%  41.01%
        S&P:     +0.21%   3.08%  27.27%  51.66%
        NASDAQ:  +0.38%   2.74%  26.82%  57.29%

    Rec'd   #  Security     In At       Now    Change
  2/28/96  400 Borders Gr    11.26     28.69   154.86%
  8/13/96  200 Carlisle C    26.32     45.44    72.60%
  6/26/96  100 Cisco Syst    53.90     85.38    58.40%
 12/23/96  100 Tidewater     46.52     69.44    49.25%
   2/2/96  200 Green Tree    30.39     45.00    48.09%
   3/8/96  400 Prime Medi    10.07     13.00    29.11%
   3/5/97  150 Atlas Air     23.06     28.56    23.87%
 11/21/96  150 Oracle Cor    32.43     36.25    11.77%

    Rec'd   #  Security     In At     Value    Change
  2/28/96  400 Borders Gr  4502.49  11475.00  $6972.51
  8/13/96  200 Carlisle C  5264.99   9087.50  $3822.51
  6/26/96  100 Cisco Syst  5389.99   8537.50  $3147.51
   2/2/96  200 Green Tree  6077.49   9000.00  $2922.51
   3/8/96  400 Prime Medi  4027.49   5200.00  $1172.51
   3/5/97  150 Atlas Air   3458.74   4284.38   $825.64
 11/21/96  150 Oracle Cor  4864.99   5437.50   $572.51
 12/23/96  100 Tidewater   4652.49   6943.75  $2291.26


                             CASH  $10538.60
                            TOTAL  $70504.23


Spacer