Boring
Portfolio Report
Friday, November 07, 1997
by Greg Markus
([email protected])
COLLEGE PARK, MD (Nov. 7, 1997) -- The number of job-holding Americans increased even more than expected in October, sending the unemployment rate down to 4.7%, its lowest level in 24 years. For reasons that may once have made sense (fears of wage-pull inflation) but are open to doubt nowadays, the news contributed to a sell-off in U.S. stocks. That the Japanese stock market fell more than 4% to hit a two-year low only added to the tension here.
The Dow, which was off nearly 200 points during the session, regained about half its losses to close down 102, or 1.33%. The S&P 500 dropped 1.12% and the Nasdaq, 1.30%. Friday's losses trimmed the weekly gains to 0.55% for the Nasdaq and 1.41% for the S&P 500.
As for the Boring Portfolio, it suffered a proportionately smaller daily drop and larger weekly gain, falling 0.93% on Friday yet still managing a 2.56% advance over the past five sessions.
That gain helped the Borefolio recover from damage inflicted by the 62% crash in shares of OXFORD HEALTH PLANS (Nasdaq: OXHP) the week before. We sold OXHP on Tuesday after the company reported its quarterly results, such as they were. A summary of Oxford's follow-up conference call is available here in The Motley Fool for the strong of stomach and the seeker of cheap thrills -- well, fairly expensive thrills for the Borefolio, actually. The current issue of Business Week provides a well-researched and well-written story on the Oxford debacle, as well.
BORDERS GROUP (NYSE: BGP) was the sole advancing issue among Borefolio holdings Friday, edging up $3/8 to close as $29 1/16. The stock shot up better than 12% this week after the company preannounced break-even results for its October quarter -- three-cents ahead of analysts' expectations -- and its Internet commerce plans.
CISCO SYSTEMS (Nasdaq: CSCO) fell $1 3/8 Friday. Earlier in the week, CSCO rose after the company reported better-than-expected quarterly earnings of $0.59 and announced a three-for-two stock split. You're invited to read our synopsis of Cisco's conference call. CSCO gained $1 1/2 on the week. Fans of the Kid will be interested in Fortune magazine's interview with Cisco CEO John Chambers.
ORACLE (Nasdaq: ORCL) dipped $3/8. An item in this morning's Wall Street Journal reported that APPLE COMPUTER (Nasdaq: AAPL) may partner with Oracle by producing network computers, to be available in mid-1998. Oracle would supply the client-server software required to make the thin-client approach work in corporate settings. Apple co-founder and acting CEO Steve Jobs is expected to make a formal announcement on Monday.
Borefolio newcomer FELCOR SUITE HOTELS (NYSE: FCH) eased $3/8 in moderate trading. The hotel world watches with interest the tussle between STARWOOD LODGING (NYSE: HOT) and HILTON (NYSE: HLT) to see which one will acquire ITT (NYSE: ITT) and its Sheraton hotels. Starwood has upped its bid, while Hilton's decided to try the unfriendly takeover route -- hoping to get ITT shareholders to oust pro-Starwood board members in a proxy vote this coming Wednesday.
Meantime, I monitor all this from my Maryland hotel room ... and not one of FelCor's all-suite properties, alas.
Stock Change Bid ATLS - 1/2 27.88 BGP + 3/8 29.06 CSL - 3/8 44.38 CSCO -1 3/16 83.50 FCH - 3/8 37.25 GNT - 11/16 43.94 ORCL - 3/8 34.94 PMSI - 1/8 12.88 TDW -2 1/4 66.06 |
Day Month Year History
BORING -0.93% 2.56% 20.42% 38.57%
S&P: -1.12% 1.41% 25.21% 49.21%
NASDAQ: -1.30% 0.55% 24.12% 53.93%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 29.06 158.19%
8/13/96 200 Carlisle C 26.32 44.38 68.57%
6/26/96 100 Cisco Syst 53.90 83.50 54.92%
2/2/96 200 Green Tree 30.39 43.94 44.59%
12/23/96 100 Tidewater 46.52 66.06 41.99%
3/8/96 400 Prime Medi 10.07 12.88 27.87%
3/5/97 150 Atlas Air 23.06 27.88 20.89%
11/21/96 150 Oracle Cor 32.43 34.94 7.72%
11/6/97 200 FelCor Sui 37.59 37.25 -0.90%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 11625.00 $7122.51
8/13/96 200 Carlisle C 5264.99 8875.00 $3610.01
6/26/96 100 Cisco Syst 5389.99 8350.00 $2960.01
2/2/96 200 Green Tree 6077.49 8787.50 $2710.01
12/23/96 100 Tidewater 4652.49 6606.25 $1953.76
3/8/96 400 Prime Medi 4027.49 5150.00 $1122.51
3/5/97 150 Atlas Air 3458.74 4181.25 $722.51
11/21/96 150 Oracle Cor 4864.99 5240.63 $375.64
11/6/97 200 FelCor Sui 7518.00 7450.00 -$68.00
CASH $3021.10
TOTAL $69286.73
