Cisco Acquires
Friday, May 22, 1998
by Greg Markus (TMF Boring)
Costa Mesa, Calif. (May 22, 1998) -- Stocks eased in very light trading ahead of the Memorial Day weekend. The S&P 500 lost 0.37% to 1110 while the Nasdaq finished an unsettled week for tech stocks by falling 0.88%. For the month to date, the Nasdaq has lost 3.4%.
The Boring Portfolio wilted as the unofficial start to summer kicked off. Six of eight holdings declined Friday, sending the Borefolio south to the tune of -1.0%.
Cisco Systems (Nasdaq: CSCO) announced another acquisition today. This time, though, it wasn't a young company at the bleeding edge of networking technology. Instead, it was land -- about 230 acres of prime Silicon Valley real estate, to be precise.
In a press release, Cisco said it had no immediate plans to build on two sites it has signed a definitive agreement to buy, one of 80 acres on Tasman Drive in Milpitas and another of 150 acres on N. First St. in San Jose. Eventually, however, Cisco estimates the land could hold between 16 and 19 buildings, and about 10,000 employees.
Cisco currently occupies a 135-acre site on Tasman Drive, which could accommodate up to 11,000 employees. The company currently employs about 8300 employees in the Bay area and about 13,500 worldwide.
The Kid's stock eased $7/8 to a bid of $76 13/16 Friday. Earlier in the week, Cisco crossed the $80 mark to establish a new all-time high following the release of an industry study that showed that Cisco had further increased its leading share of the fast-growing LAN switch market during the first quarter of 1998.
Elsewhere, shares of Borefolio leader Borders Group (NYSE: BGP) slipped $1/4 to $33 1/4.
In our FWIW department, on Thursday, Brown Brothers Harriman retail analyst Donald Trott told CNNfn's Business Day that a business model for selling books profitably on the Internet has not yet evolved. He thus favors Borders Group, because the company is taking a low-key approach to e-commerce while it learns that business.
Trott also likes Borders Group's international initiative.
"They're going global," he said. "They're in Singapore. They're in the UK. We're going to see Australia this year. And that's where their focus for their longer-term future is, beyond the saturation of superstores in the United States."
On the upside, Atlas Air (NYSE: CGO) provided a bit of lift to the Borefolio, rising $3/16 to $35 5/16. And the newest entrant to our Boring basket, TCBY (NYSE: TBY) gained $1/8 to $10 1/8.
That move puts the Borefolio's 400 share investment in TCBY into the black... or should I say into the chocolate? I haven't had a chance yet to locate a TCBY here in the South Bay area, but believe me, I will.
Do have a wonderful and safe holiday weekend, folks. I'll catch you back here Tuesday.
FoolWatch -- It's what's going on at the Fool today.
Stock Change Bid ANDW - 1/2 21.63 CGO + 3/16 35.31 BGP - 1/4 33.25 CSL -1 5/16 48.88 CSCO - 7/8 76.81 FCH - 3/8 34.63 PNR -1 5/16 42.19 TBY + 1/8 10.13 |
Day Month Year History
BORING -1.10% -0.11% 3.06% 29.68%
S&P: -0.37% -0.12% 14.43% 78.64%
NASDAQ: -0.88% -3.39% 14.94% 73.40%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 33.25 195.39%
6/26/96 150 Cisco Syst 35.93 76.81 113.76%
8/13/96 200 Carlisle C 26.32 48.88 85.66%
3/5/97 150 Atlas Air 23.06 35.31 53.14%
5/20/98 400 TCBY Enter 10.05 10.13 0.80%
4/14/98 100 Pentair 43.74 42.19 -3.55%
11/6/97 200 FelCor Sui 37.59 34.63 -7.89%
1/21/98 200 Andrew Cor 26.09 21.63 -17.11%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 13300.00 $8797.51
6/26/96 150 Cisco Syst 5389.99 11521.88 $6131.89
8/13/96 200 Carlisle C 5264.99 9775.00 $4510.01
3/5/97 150 Atlas Air 3458.74 5296.88 $1838.14
5/20/98 400 TCBY Enter 4018.00 4050.00 $32.00
4/14/98 100 Pentair 4374.25 4218.75 -$155.50
11/6/97 200 FelCor Sui 7518.00 6925.00 -$593.00
1/21/98 200 Andrew Cor 5218.00 4325.00 -$893.00
CASH $5429.76
TOTAL $64842.26
