SAN FRANCISCO, Calif. (March 27, 1998) -- The Boring Portfolio closed moderately higher Friday, putting an exclamation point on a week in which the Borefolio picked up a bit more than a thousand bucks (+1.63%) and pushed back into the black for the year-to-date.
Most of that gain came from Cisco Systems (Nasdaq: CSCO). The Kid edged up fractionally on the bid Friday to reach an all-time high just under the $70 mark -- a mark it touched briefly during the day. For the week, Cisco rose 9%, perhaps propelled by upbeat comments from president and CEO John Chambers and senior vice president Don Listwin regarding the company's strategic push to merge voice, video, and data communications.
A reader alerted me that the current issue of The Economist carries a story on Cisco and its chief executive. The story is available online at The Economist's website. I didn't find a whole lot of new news in it, but it's worth a look.
Carlisle Companies (NYSE: CSL) rose $1/4 Friday. As noted in Monday's Boring recap, Carlisle's wire and cable subsidiary, Tensolite Co., acquired privately held Vermont Electromagnetics Corp. of Williston, Vermont. Terms of the transaction were not disclosed.
The Tensolite subsidiary has been perhaps the brightest star in Carlisle's constellation over the past year or so, with more business than it was able to handle. The acquisition promises to enhance the Carlisle's ability to capitalize on opportunities in the rapidly growing specialty electronics markets.
This week also saw our snoozy hotel REIT, FelCor Suite Hotels (NYSE: FCH), rouse from its winter nap. FelCor announced Tuesday that it will be buying 109 hotels from Bristol Hotel (NYSE: BH), the world's largest owner of Holiday Inns (mostly Crown Plazas), in exchange for $1.2 billion in stock and the assumption of $700 million of debt.
As a real estate investment trust, or REIT, FelCor can own but not directly manage its hotels. Bristol will therefore spin off the hotel operations side of its business as a new public company, Bristol Hotels & Resorts Inc.
Then, each Bristol share will be swapped for 0.685 share of FelCor, for a total of 31.7 million FelCor shares. The "new" FelCor will then own 184 hotels, with more than 46,000 rooms, and have a market capitalization of more than $4 billion, making it the largest "non-paired" hotel REIT. The new Bristol will, in turn, operate the hotels for FelCor.
In an interview with Reuters, FelCor chief executive Thomas Corcoran said that he expects the deal to boost FelCor's 1998 earnings "by four to five percent above the $3.81 per share First Call consensus estimate."
FelCor stock rose $3/16 Friday to $36 7/8.
That's about it. Enjoy the weekend!
Stock Change Bid ANDW - 5/16 19.63 CGO - 1/8 32.88 BGP + 1/4 33.94 CSL + 1/4 48.06 CSCO + 1/16 69.38 FCH + 3/16 36.88
Day Month Year History BORING +0.18% 0.33% 0.85% 26.90% S&P: -0.49% 4.39% 12.88% 76.22% NASDAQ: -0.27% 3.00% 16.13% 75.19% Rec'd # Security In At Now Change 2/28/96 400 Borders Gr 11.26 33.94 201.50% 6/26/96 150 Cisco Syst 35.93 69.38 93.07% 8/13/96 200 Carlisle C 26.32 48.06 82.57% 3/5/97 150 Atlas Air 23.06 32.88 42.57% 11/6/97 200 FelCor Sui 37.59 36.88 -1.90% 1/21/98 200 Andrew Cor 26.09 19.63 -24.78% Rec'd # Security In At Value Change 2/28/96 400 Borders Gr 4502.49 13575.00 $9072.51 6/26/96 150 Cisco Syst 5389.99 10406.25 $5016.26 8/13/96 200 Carlisle C 5264.99 9612.50 $4347.51 3/5/97 150 Atlas Air 3458.74 4931.25 $1472.51 11/6/97 200 FelCor Sui 7518.00 7375.00 -$143.00 1/21/98 200 Andrew Cor 5218.00 3925.00 -$1293.00 CASH $13625.51 TOTAL $63450.51