Boring Buys TCBY
Wednesday, May 20, 1998
By Greg Markus (TMF Boring)
ANN ARBOR, Mich. (May 20, 1998) -- U.S. stocks closed mixed Wednesday as strength in large-cap stocks and bonds played against weakness in technology issues. The S&P 500 rose 0.86% but the Nasdaq slumped 0.76%.
The Boring Portfolio retraced some of its recent gains, ebbing 0.80%. "Profit-taking" in shares of Cisco Systems (Nasdaq: CSCO) sent that stock lower by $1 3/4 to finish under the $80 mark, which it had surpassed the day before.
Cisco jumped $2 5/8 on Tuesday after an analyst highlighted results of a new study by networking market research firm, the Dell'Oro Group.
I obtained some additional details of the Dell'Oro report today. According to that study, Cisco captured 45% of the LAN switch market in the first quarter of 1998, up from a 36% share in the preceding quarter. Moreover, the total LAN switch market itself increased 6% quarter-over-quarter, to $1.5 billion in revenues.
Results in the ATM switch segment were equally positive for The Kid.
The ATM WAN market increased by 13% sequentially, to $397 million, and Cisco increased its leading share of that segment by 1 percentage point, to 31%. Newbridge Networks (NYSE: NN) held the second slot according to Dell'Oro with a 24% share, down 2 points.
As for ATM LAN, total sales increased 9% sequentially to $202 million. Fore Systems (Nasdaq: FORE) remained top dog, with a 32% share, while Cisco held steady in the number two position, with a 21% share.
In other Boring news, we added 400 shares of TCBY Enterprises (NYSE: TBY) to the Borefolio today. You see that intra-day high of $10 for the stock? Well, that's me -- maintaining my tradition of top-ticking on Borefolio buys.
Shares of TCBY closed unchanged at $9 13/16, which means we begin what we hope to be a long-term investment in the company a few bucks in the hole.
I don't expect that loss to last long, though. I don't know what the weather's like where you are, but the bank thermometer I passed today here in Michigan read 90 degrees, and the swimming pools haven't even opened for the season here yet. Could be a long, hot one.
Perfect.
FoolWatch -- It's what's going on at the Fool today.
Stock Change Bid ANDW - 1/8 21.75 CGO + 1/8 36.50 BGP + 1/8 33.81 CSL - 13/16 50.94 CSCO -1 3/4 78.63 FCH - 1/16 35.06 PNR - 1/2 44.44 TBY --- 9.81 |
Day Month Year History
BORING -0.80% 1.89% 5.13% 32.28%
S&P: +0.86% 0.66% 15.32% 80.02%
NASDAQ: -0.76% -1.96% 16.64% 75.97%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 33.81 200.39%
6/26/96 150 Cisco Syst 35.93 78.63 118.81%
8/13/96 200 Carlisle C 26.32 50.94 93.50%
3/5/97 150 Atlas Air 23.06 36.50 58.29%
4/14/98 100 Pentair 43.74 44.44 1.59%
5/20/98 400 TCBY Enter 10.05 9.81 -2.31%
11/6/97 200 FelCor Sui 37.59 35.06 -6.72%
1/21/98 200 Andrew Cor 26.09 21.75 -16.63%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 13525.00 $9022.51
6/26/96 150 Cisco Syst 5389.99 11793.75 $6403.76
8/13/96 200 Carlisle C 5264.99 10187.50 $4922.51
3/5/97 150 Atlas Air 3458.74 5475.00 $2016.26
4/14/98 100 Pentair 4374.25 4443.75 $69.50
5/20/98 400 TCBY Enter 4018.00 3925.00 -$93.00
11/6/97 200 FelCor Sui 7518.00 7012.50 -$505.50
1/21/98 200 Andrew Cor 5218.00 4350.00 -$868.00
CASH $5429.76
TOTAL $66142.26
