Boring Portfolio

Boring Portfolio Report
Tuesday, January 13, 1998
by Greg Markus (TMFBoring@aol.com)


ANN ARBOR, Mich. (Jan. 13, 1998) -- U.S. stocks extended yesterday’s gains, with semiconductor stocks showing particular strength thanks to a strong earnings report from specialty chip-maker Vitesse (Nasdaq: VTSS) and confidence among traders that Intel (Nasdaq: INTC) would not disappoint when it reported its fourth-quarter results after the bell. (And Intel did not disappoint, posting earnings of $0.98 per share, well ahead of the consensus forecast of $0.90.)

The Nasdaq, home to many chip stocks, soared 2.24%. The S&P 500 gained 1.38%. The Boring Portfolio pulled up behind with a 1.06% advance. Six of eight Borefolio holdings moved up, led by a $1 9/16 increase in shares of Carlisle Companies.

Oil service stocks were among Tuesday’s winners. That included our entry, Tidewater (NYSE: TDW), which rose $5/16. Rowan Companies (NYSE: RDC), which operates in three segments of energy services (drilling, flight services, and equipment manufacture) is scheduled to report fourth-quarter results tomorrow. Global Marine (NYSE: GLM), the world’s largest provider of offshore turnkey drilling services, will report on Thursday. The tenor of their results -- and particularly their forward-looking comments -- could offer some useful information to fill the void into which oilpatch stocks have dropped in recent weeks.

First Call’s latest survey of analysts reveals that in the past week one analyst trimmed his or her earnings forecasts for Prime Medical Services (Nasdaq: PMSI) slightly. The current consensus forecast is for earnings of $0.19 per share for the quarter just ended -- a penny lower than the old consensus estimate. The average estimate for 1998 has also been trimmed by a penny, to $0.83 from $0.84.

Prime Medical followers will recall that the company partners with physicians in its lithotripsy and new prostate thermotherapy business lines. Proposed federal regulations would restrict physicians’ participation in such partnerships, and some recent softness in Prime’s stock may be related to that. My Borefolio partner Mark Weaver, MD, is researching this, and when we’ve sorted it out for ourselves, we’ll pass along our conclusions.

Cisco Systems (Nasdaq: CSCO) CEO John Chambers received an award from Japanese Prime Minister Ryutaro Hashimoto today. The special Trade Award congratulated Cisco for having “gone beyond merely selling its products to become an active promoter of cooperation between Japan and the United States.” It also said that Cisco "deserves much of the credit for laying the groundwork for the Internet in Japan."

Cisco’s stock rose $1/4 to a bid of $55 15/16.

Other than that, not a whole lot happened Tuesday that affects the Borefolio. Just a fine, boring day for a change.

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Buy a Book and Get It Signed! -- Book Tour '98


TODAY'S NUMBERS
Stock  Change    Bid 
 CGO   +  1/16  23.88 
 BGP   +  1/4   29.25 
 CSL   +1 9/16  42.25 
 CSCO  +  1/4   55.94 
 FCH   -  1/16  35.88 
 GNT   +  3/4   24.81 
 PMSI    ---    12.00 
 TDW   +  5/16  42.94 
 
                   Day   Month    Year  History 
         BORING   +1.06%  -4.98%  -4.98%  19.56% 
         S&P:     +1.38%  -1.89%  -1.89%  53.17% 
         NASDAQ:  +2.24%  -1.85%  -1.85%  48.07% 
  
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     29.25   159.86% 
   8/13/96  200 Carlisle C    26.32     42.25    60.49% 
   6/26/96  150 Cisco Syst    35.93     55.94    55.67% 
    3/8/96  400 Prime Medi    10.07     12.00    19.18% 
    3/5/97  150 Atlas Air     23.06     23.88     3.54% 
   11/6/97  200 FelCor Sui    37.59     35.88    -4.56% 
  12/23/96  100 Tidewater     46.52     42.94    -7.71% 
    2/2/96  200 Green Tree    30.39     24.81   -18.35% 
  
     Rec'd   #  Security     In At     Value    Change 
   2/28/96  400 Borders Gr  4502.49  11700.00  $7197.51 
   8/13/96  200 Carlisle C  5264.99   8450.00  $3185.01 
   6/26/96  150 Cisco Syst  5389.99   8390.63  $3000.64 
    3/8/96  400 Prime Medi  4027.49   4800.00   $772.51 
    3/5/97  150 Atlas Air   3458.74   3581.25   $122.51 
   11/6/97  200 FelCor Sui  7518.00   7175.00  -$343.00 
  12/23/96  100 Tidewater   4652.49   4293.75  -$358.74 
    2/2/96  200 Green Tree  6077.49   4962.50 -$1114.99 
  
                              CASH   $6427.47 
                             TOTAL  $59780.60