Boring Portfolio

Cisco Sprints
Tuesday, June 2, 1998
by Greg Markus

ANN ARBOR, Mich. (June 2, 1998) -- Another day of divergence in the stock market. Declining issues outnumbered advancers on the NYSE, Nasdaq and Amex, and the Dow lost 31 points. The S&P 500 managed to post a 0.19% gain, nonetheless, and the Nasdaq recouped a good chunk of Monday's losses by rising 0.86%.

The Boring Portfolio rose 0.17% in value, thanks largely to a $2 7/8 jump in shares of Cisco Systems (Nasdaq: CSCO), along with fractional gains by Andrew Corp. (Nasdaq: ANDW) and Carlisle (NYSE: CSL).

Cisco's stock rose after Sprint (NYSE: FON) announced this morning that after two years of confidential testing, it was rolling out a revolutionary new multimedia telecommunications network that relied heavily on The Kid's products.

Sprint said its new Integrated On-Demand Network can provide homes and businesses with virtually unlimited bandwidth over a single existing telephone line for simultaneous voice, video calls and data services.

According to a press release, "A household or business will be able to conduct multiple phone calls, receive faxes, run new advanced applications and use the Internet at speeds up to 100 times faster than today's conventional modems -- all simultaneously through a single connection. The need for multiple phone lines will be eliminated, and applications such as high-speed online interactive services, video calls and telecommuting will be readily accessible and less costly. Use of the Internet will be so fast that typical pages on the World Wide Web will pop up almost instantaneously."

Oh, momma.

The new service, which uses the cell-based transmission technology of the Internet as opposed to the circuit-based switching of traditional telephony, will be available to large businesses later this year. Sprint expects to expand it to businesses of all sizes by mid-1999 and projects that it will be available to residential users late next year.

At which time, to quote The Artist Formerly Known as Prince, we're gonna party like it's 1999.

Elsewhere in the Borefolio, FelCor Suite Hotels (NYSE: FCH) announced today that they (which is to say, we) just bought the 302-room Doubletree hotel at Campbell Centre, which is located at the intersection of US 75 and Northwest Highway in Dallas.

The transaction provides for a 90% ownership by FelCor and a 10% ownership by Promus Hotel (NYSE: PRH). Purchase price was $32 million in cash.

An estimated $2.5 million renovation program will be initiated to upgrade rooms and the public areas of the 21-story hotel, with completion expected in early 1999.

The hotel at the Campbell Centre is book-ended by two office towers that are enveloped in gold-tinted structural glass, yielding instant recognition from travelers on the Central Expressway. The hotel features 14,000 square feet of meeting space, the Princeton Grill restaurant, recreational/fitness facilities, subterranean garage parking and is inter-connected to the two office towers by interior walkways.

The complex is ideally situated across the street from North Park Mall, one mile from Southern Methodist University, four miles from Dallas-Love Field Airport, and five miles from downtown Dallas.

Yet with all of that, FelCor's stock dipped $1/4 to $34 1/4 in relatively quiet trading. REITs just don't get no respect this year, I guess.

Pentair (NYSE: PNR) stock fell a more significant $1 3/8 to $41. Trading volume was very light, however, so I don't read anything significant into that.

Finally, Atlas Air (NYSE: CGO) holds its annual shareholder's meeting tomorrow. CGO descended $1 today along with a weak transport sector.

Atlas shareholders (or at least this one) await news about new contracts to place the 747-400 freighters that Atlas is slated to put into service later this year. Perhaps the company will have something to say at the meeting.

FoolWatch -- It's what's going on at the Fool today.

Stock  Change    Bid 
 ANDW  +  1/8   22.00 
 CGO   -1       33.88 
 BGP   -  1/16  31.19 
 CSL   +  1/16  48.31 
 CSCO  +2 7/8   76.44 
 FCH   -  1/4   34.25 
 PNR   -1 3/8   41.88 
 TBY     ---     9.63 
                   Day   Month    Year  History 
         BORING   +0.17%  -0.43%   0.77%  26.80% 
         S&P:     +0.19%   0.20%  12.63%  75.84% 
         NASDAQ:  +0.86%  -0.96%  12.19%  69.25% 
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     31.19   177.07% 
   6/26/96  150 Cisco Syst    35.93     76.44   112.72% 
   8/13/96  200 Carlisle C    26.32     48.31    83.52% 
    3/5/97  150 Atlas Air     23.06     33.88    46.91% 
   5/20/98  400 TCBY Enter    10.05      9.63    -4.18% 
   4/14/98  100 Pentair       43.74     41.88    -4.27% 
   11/6/97  200 FelCor Sui    37.59     34.25    -8.89% 
   1/21/98  200 Andrew Cor    26.09     22.00   -15.68% 
     Rec'd   #  Security     In At     Value    Change 
   2/28/96  400 Borders Gr  4502.49  12475.00  $7972.51 
   6/26/96  150 Cisco Syst  5389.99  11465.63  $6075.64 
   8/13/96  200 Carlisle C  5264.99   9662.50  $4397.51 
    3/5/97  150 Atlas Air   3458.74   5081.25  $1622.51 
   5/20/98  400 TCBY Enter  4018.00   3850.00  -$168.00 
   4/14/98  100 Pentair     4374.25   4187.50  -$186.75 
   11/6/97  200 FelCor Sui  7518.00   6850.00  -$668.00 
   1/21/98  200 Andrew Cor  5218.00   4400.00  -$818.00 
                              CASH   $5429.76 
                             TOTAL  $63401.64