Boring Portfolio

Cisco at 100?
...The Kid lifts Borefolio
By Greg Markus
(TMF Boring)

ANN ARBOR, Mich. (July 17, 1998) -- The week ended on a strong note, with the Nasdaq setting its eighth straight record and the S&P 500 at an all-time high, as well. The Boring Portfolio outpaced both benchmarks Friday, rising 0.51%.

Most of that gain was attributable to a $4 rise in shares of Cisco Systems (Nasdaq: CSCO) to a new all-time high of $99 3/4. A "strong buy" initial recommendation from an analyst at CS First Boston probably didn't hurt things any. Nor, for that matter, did speculation that The Kid might announce a stock split soon.

Financially speaking, a stock split affects investors' wealth no more than exchanging a ten dollar bill for two fivers does. But in the current overheated environment for anything and everything connected to the Internet, the mere rumor of a split sends stocks rocketing toward the ceiling.

Is Cisco a compelling buy at a hundred bucks a stub? Apparently Mr. Market thinks so. And if Cisco succeeds in its expanding its presence in the global telephony markets as well as it has in the world of data networking, Mr. Market just might be right.

For Cisco newbies who are wondering when the company will next report its quarterly results, permit me to remind you that Cisco's fiscal fourth quarter concludes at the end of July, not June. The company is slated to report its quarterly results on August 4, after the market close. All of this information, and a whole lot more, is available at Cisco's extraordinarily helpful Website.

As noted in Thursday's Boring recap, three of our companies reported their quarterly results earlier that day.

Carlisle Companies (NYSE: CSL) blew away analysts' sales and earnings forecasts, and it accomplished that despite a two-penny hit in EPS as a result of the General Motors (NYSE: GM) strike. Sales increased 17% over the year-ago period to $396 million. EPS increased 18% to $0.80 versus $0.68. Both were all-time records for the company.

Carlisle's stock gained $3/8 to $47 3/16 Friday.

The Borefolio's other diversified manufacturer, Pentair (NYSE: PNR) reported that its earnings increased 19% to $0.56 a share, a penny above the consensus forecast. Sales rose 12% to $472 million. The latter figure may have been a tad below what some folks were expecting, but nothing major.

Pentair's stock gained $13/16 to $41 15/16 on above-average trading volume Friday.

Andrew Corp. (Nasdaq: ANDW) reported earnings of $0.28 per share, in line with the company's downward guidance issued last month. Sales were a bit better than expected, at $204 million -- down 2% over last year.

Margins continue to be under pressure at Andrew, but there was at least one bright spot in yesterday's news. In a follow-up conference call, Andrew's management said that PCS infrastructure orders showed their first year-over-year uptick in five quarters, rising 33% over the year-ago period to $36 million. The company continues to see excellent growth in product sales in China, as well.

Andrew stock edged up $1/16 to $18 1/16.

We've provided summaries of the Andrew, Carlisle, and Pentair conference calls for your information.

Although I've not received formal notice from the folks at Atlas Air (NYSE: CGO) yet, I expect them to report their quarterly results next week.

On Thursday, Atlas announced it has signed a long-term agreement to provide B747-400 air freight services for Cargolux Airlines. Under the contract, Cargolux will fully utilize the second of Atlas Air's new 747-400 freighter aircraft.

Atlas will take delivery of the first of its 747-400s on July 28. British Airways (NYSE: BAB) already has dibs on that one. Four additional new freighters will be delivered in 1998, four in 1999, and one in 2000.

Atlas's stock was unchanged Friday, cruising at an altitude of $36 7/16.

Enjoy the weekend, folks! I hope to see you back here on Monday.

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

07/17/98 Close

Stock  Change    Bid 
 ANDW  +  1/16  18.06 
 CGO     ---    36.44 
 BGP   -  9/16  37.94 
 CSL   +  3/8   47.19 
 CSCO  +3 15/16 99.69 
 FCH   -  3/8   30.69 
 PNR   +  13/16 41.94 
 TBY   -  3/16  8.69 
                   Day   Month    Year  History 
         BORING   +0.57%   3.62%   8.05%  35.96% 
         S&P:     +0.23%   4.66%  22.28%  90.90% 
         NASDAQ:  +0.41%   6.02%  27.92%  92.97% 
     Rec'd   #  Security     In At       Now    Change 
   2/28/96  400 Borders Gr    11.26     37.94   237.04% 
   6/26/96  150 Cisco Syst    35.93     99.69   177.42% 
   8/13/96  200 Carlisle C    26.32     47.19    79.25% 
    3/5/97  150 Atlas Air     23.06     36.44    58.02% 
   4/14/98  100 Pentair       43.74     41.94    -4.13% 
   5/20/98  400 TCBY Enter    10.05      8.69   -13.51% 
   11/6/97  200 FelCor Sui    37.59     30.69   -18.36% 
   1/21/98  200 Andrew Cor    26.09     18.06   -30.77% 
     Rec'd   #  Security     In At     Value    Change 
   2/28/96  400 Borders Gr  4502.49  15175.00 $10672.51 
   6/26/96  150 Cisco Syst  5389.99  14953.13  $9563.14 
   8/13/96  200 Carlisle C  5264.99   9437.50  $4172.51 
    3/5/97  150 Atlas Air   3458.74   5465.63  $2006.89 
   4/14/98  100 Pentair     4374.25   4193.75  -$180.50 
   5/20/98  400 TCBY Enter  4018.00   3475.00  -$543.00 
   11/6/97  200 FelCor Sui  7518.00   6137.50 -$1380.50 
   1/21/98  200 Andrew Cor  5218.00   3612.50 -$1605.50 
                              CASH   $5528.69 
                             TOTAL  $67978.69