Boring Portfolio

Boring Portfolio Report
Friday, January 23, 1998
by Greg Markus (TMFBoring@aol.com)


Tempe, AZ (Jan. 23, 1998) -- U.S. stocks ended the week on a down note, as did the Boring Portfolio. The S&P 500 fell 0.57% while the Nasdaq closed down nominally (-0.04%) thanks to some late session bargain hunters. The Borefolio split the difference, falling 0.34% on a fairly uneventful day ... thank goodness.

For the week, the S&P 500 lost 0.41%. The Nasdaq rose, however, (+0.84%) as did the Borefolio (+0.75%). The week saw 200 shares of telecommunications equipment manufacturer Andrew Corp. (Nasdaq: ANDW) added to our holdings, and they are already contributing to Borefolio's net value.

Other than an upgrade of FelCor Suite Hotels (NYSE: FCH) by Merrill Lynch, there's no real news to report on Boring stocks. FelCor closed up $3/4. Get ready to rumble next week, though, as Tidewater (NYSE: TDW) reports its quarterly results on Monday. It's possible that we'll see news from Green Tree Financial (NYSE: GNT), also -- although that's unconfirmed.

Last Friday, I invited recommendations for stocks to add to the Borefolio, and about a dozen folks generously offered not only their picks but also some supporting arguments. I'll run through part of the list of nominees tonight, and the remainder next week. And if you care to add yours to the pile, please drop me a note or post it in the Boring Portfolio section of the stock folders.

Cintas Corp. (Nasdaq: CTAS) was nominated by a participant in The Motley Fool's Website. Cintas sells and rents uniforms of all kinds. Nearly all of their business is in the U.S., but their increasing operations in Canada. Asian exposure is zilch. Cintas's annual earnings growth is consistently in the high teens, and the stock pays a small dividend, as well. The balance sheet is rock solid. The only question mark in my mind is valuation: at 37-times projected earnings for fiscal 1998, CTAS looks more than a little dear right now. This one definitely stays on my "watch" list, however.

As does Danaher Corp. (NYSE: DHR). Danaher makes Craftsman tools for Sears as well as a variety of environmental controls and related products. Danaher also reliably cranks out profit growth in the mid- to upper teens, offers a small dividend, and has a sparkling balance sheet. At $59 9/16, the stock is about 10% below its all-time high and trades at about 21-times projected EPS of $2.89. A bit pricey, perhaps, but definitely worth a closer look.

Other interesting suggestions include small-cap Dycom Inc. (NYSE: DY) a telecommunications and data networking installer; RPM Inc. (NYSE: RPW), maker of wonderfully boring sealants and coatings (Rust-Oleum, Day-Glo, and -- ta-da!-- Bondo); and Martin Marietta Materials (NYSE: MLM), a leading aggregates supplier. That's "rocks" to me. Perfect.

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  -  13/16 27.19 
 CGO   -  9/16  21.81 
 BGP   +  5/16  31.38 
 CSL   -  7/8   44.75 
 CSCO  -  1/8   57.63 
 FCH   +  3/4   38.31 
 GNT   -  9/16  22.94 
 TDW   -5/16   45.00 
 
                   Day   Month    Year  History 
         BORING   -0.34%  -3.35%  -3.35%  21.62% 
         S&P:     -0.57%  -1.32%  -1.32%  54.05% 
         NASDAQ:  -0.04%   0.36%   0.36%  51.39% 
  
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     31.38   178.73% 
   8/13/96  200 Carlisle C    26.32     44.75    69.99% 
   6/26/96  150 Cisco Syst    35.93     57.63    60.37% 
   1/21/98  200 Andrew Corp   26.09     27.19     4.21% 
   11/6/97  200 FelCor Sui    37.59     38.31     1.92% 
    3/5/97  150 Atlas Air     23.06     21.81    -5.40% 
    2/2/96  200 Green Tree    30.39     22.94   -24.52% 
  12/23/96  100 Tidewater     46.52     45.00    -3.28% 
  
     Rec'd   #  Security     In At     Value    Change 
   2/28/96  400 Borders Gr  4502.49  12550.00  $8047.51 
   8/13/96  200 Carlisle C  5264.99   8950.00  $3685.01 
   6/26/96  150 Cisco Syst  5389.99   8643.75  $3253.76 
   1/21/98  200 Andrew Corp 5218.00   5437.50   $219.50 
    3/5/97  150 Atlas Air   3458.74   3271.88  -$186.87 
   11/6/97  200 FelCor Sui  7518.00   7662.50   $144.50 
    2/2/96  200 Green Tree  6077.49   4587.50 -$1489.99 
  12/23/96  100 Tidewater   4652.49   4500.00  -$152.49 
  
                              CASH   $5206.47 
                             TOTAL  $60809.60