Fool Portfolio Report
Friday, October 20, 1995
A rather dismal end to an otherwise interesting week for The Fool Portfolio. The Fool fell 1.87%, as our three biggest losers lost more: SNIC down $1 1/4, KLAC down $2 1/2, and Applied Materials off $2 1/4. We expect two of these three stocks to turnaround and smash past the S&P 500 in the months and years ahead. Can you guess which one we're not thrilled about?
The returns for the week, even after today's drubbing, are bearable: The Fool was up 0.86% versus S&P growth of 0.50%. The Nasdaq struts around the winner's circle, up 2.07%. . . and take a look at her grinning jocky, it's MF Nasdaq, manager of the Running Portfolio, which climbed an unfathomable 10.2%. Is that an equities or futures portfolio? A $25,000 portfolio compounded at 10.2% growth per week over two years would turn into what? $609 million. You won't find us doing anything more than throwing that out as a joke in Fooldom, but in your favorite daily financial newspaper, that sort of logic sits in a goodly number of the advertisements! Ah, Wisdom.
What happened to our stocks this week? Ride Inc., up $1/8 this week, announced 3rd quarter earnings of $0.33 versus expectations of $0.27. I've carried out a full analysis of the Ride report, accessible via our Hall of Portfolios listbox entry for Ride. The report also sits in the Ride Inc. stock folder, home to one of the most compelling investment discussions in 1995. Thanks to MF ETurkey for keeping on top of RIDE. Today, RIDE purchased some of the assets of San Diego based, SMP, designer of surf and snowboard apparel. RIDE paid $1.9 million cash and 28,500 shares for SMP, a price reducible if SMP doesn't hit established earnings targets. Ride has done well in their acquisitions of CAS, Thermal and 5150.
The big news on Iomega, up $2 3/8 on the week, was our few-hour conference with Foolish and Emerald Research analysts right here on AOL. This was really the first of its kind, and in the weeks and months ahead, we'll be ramping up at Fool Global HQ to offer ongoing meetings with analysts, fund managers, CEOs and CFOs, and our MF contingent. The entire Iomega discussion is also available via our Hall of Portfolios' listbox. Judging from the calls we've received from individuals and institutions this week, these will prove meaningful gatherings, chock full of information and analysis. Expect an upcoming service-wide meeting to discuss Ride's 3Q report and prospects.
KLA Instruments climbed $1/2 on the week, announcing 52 cents for their1st quarter versus estimates of 49 cents. KLA's revenues for the quarter were $149 million against $83 million for the same quarter last year, and that's exactly the sort of quarter-over-quarter we love to see. In the week ahead, Randy Befumo (MF Templar) will present a full report of KLA Instruments' report, which also will sit in the listbox on the Hall of Portfolios screen behind KLAC.
It wasn't a great week, but it was nearly a successful week in our quest to double the S&P 500 each year. That won't happen, of course. We're not going to, each year, double up on the market. . . but hopefully a decade from now, when we're coming at you in full-motion video, 24-hours a day, and you're coming back at us with your analyses in full-motion video, 24-hours a day, hopefully at that point, we'll be sporting historical numbers that have doubled market average, annually---the Foolish aim.
Tom Gardner, 10/20/95
AMER - 5/8 AMAT -2 1/4 CHV + 3/8 GE - 1/2 GPS - 5/8 IOMG + 3/8 KLAC -2 1/2 RIDE -1 S + 5/8 SNIC -1 1/4
Day Month Year History FOOL -1.87% -2.31% 48.63% 65.03% S&P 500 -0.54% 0.52% 27.91% 28.15% NASDAQ -0.72% -0.39% 38.23% 44.33% Rec'd # Security In At Now Change 8/5/94 340 AmOnline 14.55 65.75 352.02% 5/23/95 510 Ride Inc. 9.91 20.88 110.72% 5/17/95 335 Iomega Corp 15.11 22.25 47.22% 8/5/94 165 Sears 28.93 35.88 24.03% 4/20/95 155 The Gap 32.55 37.38 14.82% 8/11/95 95 GenElec 57.91 64.63 11.59% 8/11/95 110 Chevron 49.00 48.00 -2.04% 8/24/95 130 KLA Instrm 44.71 40.25 -9.98% 8/24/95 100 AppldMatl 57.52 47.50 -17.43% 12/23/94 340 SonicSol 14.48 8.75 -39.58% Rec'd # Security Cost Value Change 8/5/94 340 AmOnline 4945.56 22355.00 $17409.44 5/23/95 510 Ride Inc. 5052.44 10646.25 $5593.81 5/17/95 335 Iomega Corp 5063.13 7453.75 $2390.62 8/5/94 165 Sears 4772.65 5919.38 $1146.73 4/20/95 155 The Gap 5045.25 5793.13 $747.88 8/11/95 95 GenElec 5501.87 6139.38 $637.51 8/11/95 110 Chevron 5389.99 5280.00 -$109.99 8/24/95130 KLA Instrm 5812.49 5232.50 -$579.99 8/24/95 100 AppldMatl 5752.49 4750.00 -$1002.49 12/23/94 340 SonicSol 4924.18 2975.00 -$1949.18 CASH $5969.86 TOTAL $82514.24