Boring Portfolio

Cisco hits record
...will Mark McGwire?
by Mark Weaver (MWEAV)

SPRINGFIELD, IL (JULY 1, 1998) -- The third quarter got off to a good start today as all of the major indices advanced. The S&P 500 rose 1.30%, the Nasdaq was up 1.04% and the Borefolio kept pace with a 1.28% advance. Borefolio advancers outpaced losers five to three.

Several Borefolio stocks were in the news today. Borders Group (NYSE: BGP) was the recipient of a buy recommendation from JP Morgan. The analyst cited overseas expansion plans as a stimulus to sales. Borders also has an online presence and an expanding array of superstores. In spite of this money making combination, the investing community continues to favor the internet only book providers.

One rationale for favoring the online booksellers is the "lower overhead" they enjoy. I was intrigued to note that an article crossed the wires yesterday noting the expanding payroll at Amazon.com (Nasdaq: AMZN). Evidently online selling is quite labor intensive. Hmmm... so much for low overhead. On the day Borders was down $1/16 and Amazon.com was up $14 3/8 -- go figure.

Cisco Systems (Nasdaq: CSCO) continued its recent surge gaining $2 7/16. This gain comes on the heels of announcements of expanded relationships between MCI and Cisco. Also mentioned as a cause for the stock's rise is the anticipation of a stock split. This is a silly reason to bid up shares, as the Foolish investor knows. A stock split just gives an investor two halves of the same whole.

Atlas Air (NYSE: CGO) took off for a $1 9/16 gain after announcing that it was accelerating the delivery of two of its new 747-400 air freighters. The company stated that the advancement of the additional aircraft into 1999 would increase projected block hour growth rates. The company also feels that there will be a shortage of cargo aircraft when Stage 3 noise rules are implemented at the end of 1999. The additional aircraft position Atlas to take advantage of such a shortage.

On the downside, Felcor Suite Hotels (NYSE: FCH) continued to slide, down $3/8. The company announced that it raised its unsecured credit facility to $1.1 billion. This allows the company to refinance existing secured debt it will assume once the Bristol Hotels deal is completed at more favorable rates. This would seem to be bullish. In an article published yesterday Felcor was cited as one of the favorites of Prudential's REIT analyst.

I'm off to see if Mark McGwire can swat his 38th homer tonight. If he hits one more before the All-Star break it will be a record for first half home run production. That would be a nice start to my third quarter!

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


07/01/98 Close

Stock  Change    Bid 
 ANDW  +  11/16 18.69 
 CGO   +1 9/16  35.38 
 BGP   -  1/16  36.94 
 CSL   +1 3/8   44.44 
 CSCO  +2 7/16  94.50 
 FCH   -  3/8   31.00 
 PNR   -1       41.50 
 TBY   +  1/16  9.25 
 
                   Day   Month    Year  History 
         BORING   +1.28%   1.28%   5.61%  32.89% 
         S&P:     +1.30%   1.30%  18.36%  84.77% 
         NASDAQ:  +1.04%   1.04%  21.91%  83.91% 
  
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     36.94   228.15% 
   6/26/96  150 Cisco Syst    35.93     94.50   162.99% 
   8/13/96  200 Carlisle C    26.32     44.44    68.80% 
    3/5/97  150 Atlas Air     23.06     35.38    53.42% 
   4/14/98  100 Pentair       43.74     41.50    -5.13% 
   5/20/98  400 TCBY Enter    10.05      9.25    -7.91% 
   11/6/97  200 FelCor Sui    37.59     31.00   -17.53% 
   1/21/98  200 Andrew Cor    26.09     18.69   -28.37% 
  
     Rec'd   #  Security     In At     Value    Change 
   2/28/96  400 Borders Gr  4502.49  14775.00 $10272.51 
   6/26/96  150 Cisco Syst  5389.99  14175.00  $8785.01 
   8/13/96  200 Carlisle C  5264.99   8887.50  $3622.51 
    3/5/97  150 Atlas Air   3458.74   5306.25  $1847.51 
   4/14/98  100 Pentair     4374.25   4150.00  -$224.25 
   5/20/98  400 TCBY Enter  4018.00   3700.00  -$318.00 
   11/6/97  200 FelCor Sui  7518.00   6200.00 -$1318.00 
   1/21/98  200 Andrew Cor  5218.00   3737.50 -$1480.50 
  
                              CASH   $5511.82 
                             TOTAL  $66443.07 
 

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