Boring Portfolio

Boring Portfolio Report
Tuesday, December 2, 1997
by Greg Markus (TMF Boring@aol.com)


ANN ARBOR, Mich. (Dec. 2, 1997) -- The Boring Portfolio posted a modest gain Tuesday despite sharp losses in its two key technology holdings, Cisco Systems (Nasdaq: CSCO) and Oracle (Nasdaq: ORCL).

Those issues fell as part of a broad-based decline in the Nasdaq following earnings warnings from networker Cabletron (NYSE: CS) and a rumored shortfall at high-end chipmaker Altera (Nasdaq: ALTR). Altogether, the Naz slumped 1.49%. The S&P 500's losses were less severe: -0.32%.

Cisco's loss came despite an upgrade to "buy" from "accumulate" from Joseph Bellace at Merrill Lynch and a new product announcement from the folks on Tasman Drive. In upgrading Cisco, Bellace cited the company's consistent quarterly earnings growth and a projected 38% annual increase in the size of four key networking market areas in which Cisco holds the #1 or a close #2 position. Bellace offered a 12-month price target of $105, based on a fiscal 1999 EPS estimate of $3.25 to $3.35.

Meantime, Cisco introduced the Cisco uBR 7246 Universal Broadband Router and associated Multimedia Cable Network System (MCNS) modem cards, the first of Cisco's new line of cable data products. According to the company's press release, the products permit cable TV operators to offer high-speed Internet access, streaming video, secure data services, and virtual private networks to customers. Pricing and availability of the uBR 7246 will be announced early next year. Cisco will demo it at the Western Cable show in Anaheim, CA on December 10-12.

After the close of trading tonight, 3Com (Nasdaq: COMS) trumped Cabletron's warning with one of its own. Although both company's woes appear to have more to do with internal challenges than with market conditions, we should expect continued turmoil among networking stocks.

Speaking of turmoil, Tidewater (NYSE: TDW) spurted $3 1/8 to $56 7/8 to recapture some of the losses it suffered as traders, spooked by slipping oil prices, exited offshore drilling and marine services stocks. As noted here last night, most industry experts remain upbeat about the industry's prospects.

Green Tree Financial (NYSE: GNT) also recovered a bit today. Winnebago Industries (NYSE: WGO) announced today that they've selected Green Tree to be Winnebago's exclusively endorsed wholesale and retail financial source for its Winnebago, Itasca, Vectra, Luxor and Rialta dealers nationwide.

Winnebago is, of course, to motor homes and recreational vehicles what Kleenex(R) is to tissue and Band-Aid(R) is to plastic bandages. If all the Winnies lined up outside Michigan Stadium each weekend are any indication, this should make a fine addition to Green Tree's financing biz.

Lastly, FelCor (NYSE: FCH) slipped $1/4 in heavy trading today. Borefolio co-manager Mark Weaver phoned FelCor today for an update. He was informed that a block of 200,000 shares changed hands today, perhaps because some folks are concerned that the just-announced acquisition of Interstate Hotels (NYSE:IHC) by Patriot American Hospitality (NYSE: PAH) might restrict the pool of future hotel acquisitions for FelCor.

Any such concerns are unfounded, say the folks at FelCor. "Our pipeline of acquisitions is very full," they said. "And you can quote us on that."

Our pleasure.


TODAY'S NUMBERS
Stock  Change    Bid
CGO   +  5/8   27.38
BGP   +  1/8   29.06
CSL   +  5/16  43.44
CSCO  -3 7/8   86.50
FCH   -  1/4   36.00
GNT   +  11/16 30.69
ORCL  -1 7/16  30.38
PMSI  +  1/16  13.31
TDW   +3 1/8   56.88

                   Day   Month    Year  History
        BORING   +0.04%   0.04%  12.96%  29.99%
        S&P:     -0.32%  -0.32%  31.18%  56.32%
        NASDAQ:  -1.49%  -1.49%  24.43%  54.32%

    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     43.44    65.01%
  6/26/96  100 Cisco Syst    53.90     86.50    60.48%
   3/8/96  400 Prime Medi    10.07     13.31    32.22%
 12/23/96  100 Tidewater     46.52     56.88    22.25%
   3/5/97  150 Atlas Air     23.06     27.38    18.72%
   2/2/96  200 Green Tree    30.39     30.69     0.99%
  11/6/97  200 FelCor Sui    37.59     36.00    -4.23%
 11/21/96  150 Oracle Cor    32.43     30.38    -6.35%

    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   8687.50  $3422.51
  6/26/96  100 Cisco Syst  5389.99   8650.00  $3260.01
   3/8/96  400 Prime Medi  4027.49   5325.00  $1297.51
 12/23/96  100 Tidewater   4652.49   5687.50  $1035.01
   3/5/97  150 Atlas Air   3458.74   4106.25   $647.51
   2/2/96  200 Green Tree  6077.49   6137.50    $60.01
 11/21/96  150 Oracle Cor  4864.99   4556.25  -$308.74
  11/6/97  200 FelCor Sui  7518.00   7200.00  -$318.00

                             CASH   $3021.10
                            TOTAL  $64996.10



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