April Showers??
Thursday, April 30, 1998
by Mark Weaver (MWEAV)
ANN ARBOR, Mich. (April 30, 1998) -- Positive economic news cooled investors fears of an interest rate hike and, for the markets, it was off to the races again. Strong 4.2% growth in first quarter GDP combined with an unexpectedly low employment cost index boosted the market. The low inflation, moderate growth scenario appears to be intact and fears of Fed action on interest rates were mitigated.
The Nasdaq Index rose 0.91%, the S&P 500 gained 1.57%, and the Borefolio was up 1.87%. This completed our first market beating month of the year as the Borefolio bested both indices with its 2.08% rise for the month. On this final day of the month the Borefolio hit on all cylinders with 7 out of 7 stocks rising.
The big winner on the day was Cisco Systems (Nasdaq: CSCO), up $1 5/16. Perhaps the market was celebrating the rare day when Cisco has no press release. Cisco is sitting near its all time high and has more than doubled in the almost two years that we've held the stock. To these eyes, while not a screaming bargain, there is still some upside to Cisco's shares. We are happy to be holding "the Kid."
Also rising more than a full point was Borders Group (NYSE: BGP), which has officially ended another month without opening Borders.com, its Internet commerce venture. Looking at the profits, or lack thereof, of current Internet bookstores I could surmise that each day the site isn't open is one more day before losses begin. But aside from being inaccurate (Borders is already spending money on the venture), it might sound a bit like sour grapes. Like Greg said yesterday... maybe May. Borders rose $1 1/8.
Our third point-sized gainer was Atlas Air (NYSE: CGO). Atlas took off for a $1 1/6 gain. There was no news to report today but I suspect this rise is more follow through from the stellar earnings report released last week. Atlas is trading near its all-time highs.
After months with no news at all FelCor Suite Hotels (NYSE: FCH) has been a virtual news machine. Today FelCor's recent acquisition, Bristol Hotels (NYSE: BH), announced that it purchased 20 mid-western hotels from Omaha Hotel, Inc. This portfolio of hotels includes 3,450 rooms in Omaha, Moline IL, Davenport IA, Kansas and Midland TX. This purchase solidifies Bristol's position as the largest Holiday Hospitality franchisee. FelCor rose $15/16 on the news. At $35 these shares look like a bargain to these eyes.
Here's hoping that the Borefolio enjoys May as much as we've enjoyed April.
FoolWatch -- It's what's going on at the Fool today.
Stock Change Bid ANDW + 1/8 22.50 CGO +1 1/16 39.00 BGP +1 1/8 32.13 CSL + 3/4 50.75 CSCO +1 5/16 73.25 FCH + 15/16 35.00 PNR + 3/16 43.25 |
Day Month Year History
BORING +1.86% 2.08% 3.18% 29.83%
S&P: +1.57% 0.91% 14.56% 78.85%
NASDAQ: +0.91% 1.78% 18.98% 79.49%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 32.13 185.40%
6/26/96 150 Cisco Syst 35.93 73.25 103.85%
8/13/96 200 Carlisle C 26.32 50.75 92.78%
3/5/97 150 Atlas Air 23.06 39.00 69.14%
4/14/98 100 Pentair 43.74 43.25 -1.13%
11/6/97 200 FelCor Sui 37.59 35.00 -6.89%
1/21/98 200 Andrew Cor 26.09 22.50 -13.76%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 12850.00 $8347.51
6/26/96 150 Cisco Syst 5389.99 10987.50 $5597.51
8/13/96 200 Carlisle C 5264.99 10150.00 $4885.01
3/5/97 150 Atlas Air 3458.74 5850.00 $2391.26
4/14/98 100 Pentair 4374.25 4325.00 -$49.25
11/6/97 200 FelCor Sui 7518.00 7000.00 -$518.00
1/21/98 200 Andrew Cor 5218.00 4500.00 -$718.00
CASH $9251.26
TOTAL $64913.76
