Boring Portfolio

Boring Portfolio Report
Wednesday, January 21, 1998
by Greg Markus (TMFBoring@aol.com)


ANN ARBOR, Mich. (Jan. 21, 1998) -- And the earnings reports just keep coming.... A cautious one from IBM (NYSE: IBM) dropped that stock for an 8% loss Wednesday, driving the blue chip benchmarks down along with it.

The Dow, which was off as much as 135 points during the session, ended the day down 79. The S&P 500 fell 0.80%. The Nasdaq fared better, slipping only 0.14%. As for the Borefolio, it split the difference, dropping 0.48%.

Today's Borefolio loss would have been steeper had not Andrew Corp. (Nasdaq: ANDW) added $245 to the portfolio's net asset value in its Boring debut. (That gain takes into account the $18 slice for our discount broker.) We purchased 200 shares of ANDW at $26 this morning.

If you happened to miss our buy report on Andrew and are interested in reading it, click here. As with all transactions in the Borefolio (and within all Motley Fool portfolios, for that matter), the purpose of our "buy" and "sell" reports is not at all to recommend what to do but rather to explicate why we're doing what we're doing. The goal, as always, is education and (in a word too often used these days, but fitting in this instance) empowerment.

Also, as always, the conversation here flows both ways -- all ways, actually, in our Webbified world -- and not "top-down" (assuming one can even determine where the "top" happens to be located; if you find out, please let me know).

We've still got about $5200 in cash in the Borefolio's strongbox, and that will cover one more buy, barring any eliminations of current holdings. So far, we've received about a dozen recommendations for filling that slot. The recommendations are nearly all entirely appropriate and well-reasoned, and I'm tilting fairly decisively toward a couple of nominations -- if not for this time around then for next time around. On Friday (the flow of new information permitting) I'd like to run down the list with you.

As for our current holdings, they were characterized by fractional drops of no real consequence today. Other than our princely Andrew, Green Tree Financial (NYSE: GNT) was the sole gainer. The Tree sprouted $1/8.

The folks at FelCor Suite Hotels (NYSE: FCH) reported their fourth quarter results before the bell. The Irving, Texas-based REIT reported funds from operation (FFO) of $0.78 per share, beating the consensus estimate of analysts by two cents and the top-end forecast by a penny. The stock eased $1/8, nonetheless, in a generally weak session for hotel stocks.

FelCor's earnings report on the wire is quite complete and covers essentially everything discussed in the brief followup conference call. So if you're interested, you'll probably want to check that out. And if you want to get up to speed on FFO, RevPAR, and other such jargon, consider reviewing our buy report on FelCor--and dropping into the Real Estate section of The Motley Fool's Industry Area.)

The outlook for FelCor looks very good: currently owned hotels are performing well, FelCor has ample access to capital to participate in further acquisition activity this year--which they very much intend to do, a number of joint ventures with existing partner organizations are under consideration, and various additional "ones-y and twos-y" hotel purchases are anticipated. The REIT also expect to hike the dividend by 10% in the third quarter of this year.

FoolWatch -- It's what's going on at the Fool today.

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


TODAY'S NUMBERS
Stock  Change    Bid 
 ANDW   +1 5/16  27.31 
 CGO   -  1/4   23.13 
 BGP   -  3/4   31.13 
 CSL   -  9/16  45.19 
 CSCO  -  1/16  59.31 
 FCH   -  1/8   37.50 
 GNT   +  1/8   24.13 
 TDW   -  13/16 48.69 
 
                   Day   Month    Year  History 
         BORING   -0.48%  -1.91%  -1.91%  23.43% 
         S&P:     -0.80%   0.04%   0.04%  56.17% 
         NASDAQ:  -0.14%   1.12%   1.12%  52.54% 
  
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     31.13   176.51% 
   8/13/96  200 Carlisle C    26.32     45.19    71.65% 
   6/26/96  150 Cisco Syst    35.93     59.31    65.06% 
   1/21/98  200 Andrew Corp    26.09     27.31     4.67% 
    3/5/97  150 Atlas Air     23.06     23.13     0.29% 
   11/6/97  200 FelCor Sui    37.59     37.50    -0.24% 
    2/2/96  200 Green Tree    30.39     24.13   -20.61% 
  12/23/96  100 Tidewater     46.52     48.69     4.65% 
     
   Rec'd   #  Security     In At     Value    Change 
   2/28/96  400 Borders Gr  4502.49  12450.00  $7947.51 
   8/13/96  200 Carlisle C  5264.99   9037.50  $3772.51 
   6/26/96  150 Cisco Syst  5389.99   8896.88  $3506.89 
   1/21/98  200Andrew Corp  5218.00   5462.50   $244.50 
    3/5/97  150 Atlas Air   3458.74   3468.75    $10.01 
   11/6/97  200 FelCor Sui  7518.00   7500.00   -$18.00 
    2/2/96  200 Green Tree  6077.49   4825.00 -$1252.49 
  12/23/96  100 Tidewater   4652.49   4868.75   $216.26 
  
                              CASH   $5206.47 
                             TOTAL  $61715.85