Fool Portfolio Report
Monday, November 13, 1995

For the second consecutive day, the Fool far eclipsed its 90% historic return mark DURING the day, but couldn't close above it by day's end. With a passel of our Foolish stocks jumping multiple points and hitting all-time highs intra-day, we watched almost all of them sell off and leave us with an uninteresting daily return (but still a new Foolish all-time high). But even a profit of .08% ain't too shabby, when held up against losses in the NASDAQ (down .55%) and the S&P 500 (down .07%). Our aim, after all, is to beat the market day in and day out. If we can continue to whomp the market averages on a daily basis, our annual returns will maintain the exceedingly market-beating performances that Foolishness is heir to.

America Online served in many ways as a microcosm of the day, as well as the singularly most compelling news getter. After receiving a slightly bearish mention on Louis Rukeyser's television show last Friday, a bearish mention in Bear-ons (my term for Dow Jones's weekend rag) which quoted a money manager saying he was (whaddaya know?!) SHORT, AND a fairly bullish article in today's Heard on the Street column in The Wall Street Journal, AND. . .

(I can go on, you see). . .

. . . AND a big press release today featuring a new online banking deal between America Online and Intuit (the maker of Quicken). . . all this ended up resulting in AMER hitting an intra-day high of $84 1/4 (up $2 3/4), only to close bidding $80 1/2, down $1.

Go figger.

In fact, go one better. . . go to the America Online message folder in our Stock Boards section, where you'll find a vigorous discussion of all the aforementioned. It's the single best way to keep up with this stock, anywhere, anytime, period. You'll also find keyword PRESS helpful to learn more about the Intuit deal, which I'm still studying and we'll write more about this week.

Applied Materials did a similar nosedive, up fractionally for most of the day before turning down in the afternoon, off $2. Fortunately for us, KLA Instruments didn't completely duplicate that curve, managing (despite its own late-day selloff) to close up $1/2 to $41 1/2. These two semiconductor stocks, purchased on the same fateful day in August, are still both losers. Interestingly, KLA has been the outperformer since the beginning, off 7.2% vs. AMAT's 13.5%. Our KLAC investment has, in fact, flirted with profitability as recently as last week.

And how about Sears, if we're making the theme SELLOFFS? The behemoth mass-market retailer flew into new high territory actually touching $40 today, before selling off down to a bid of $38 7/8. That was still up $3/8, a new 52-week high. Sears remains an extremely good Dow Dividend pick, profiting handsomely for those of us Foolish enough to ignore the naysayers who insisted, "Nobody shops at Sears anymore!" We heard the same about Gap when we bought it last April, and even though GPS dropped $7/8 today to $45 5/8, that sucker is still up 40% from our cost. It seems whenever conventional wisdom suggests that "nobody" is shopping at a multibillion-dollar retailer, odds on it's a good time to buy!

OK, now to the good news. How about Iomega, for example? IOMG kept its fantastic streak going today, up $1 3/8 to $33 1/8. It ALSO sold off, as this dynamic growth stock hit an all-time high of $34 7/8 in the morning, but couldn't hold it. The company announced today that it would be selling its one millionth "unit" for 1995 in the next few days, consisting mostly of Ditto tape drives and Zip storage drives. Fourth quarter estimates remain very high for this stock, and these shares continue higher on sentiment attached to its new relationship with Micron Electronics, announced last week. In that deal, you'll recall, Micron announced that in all its Micron-brand PCs, it would offer the full suite of Iomega drives (Ditto, Zip, and Jaz) as factory-installed options. Speculation continues in the Iomega folder about the likelihood of (a) other PC manufacturers doing similar deals with our company, and (b) the Zip drive one day replacing the 3.5" floppy disk.

Obviously, either of these outcomes would cause the share price to rise even further from its current level. It's been quite a month for Foolish shareholders, as we've watched this stock rise from its early October low of $16 1/2 to more than double, now above $33 in early November.

Maybe tomorrow, we'll actually see some of these stocks hit and HOLD new highs, but for now we'll be content to have beaten a down market today, and to dream just a little about what MIGHT have been.

---David Gardner, November 13, 1995


Today's Moves


AMER -1
AMAT -2
CHV + 1/2
GE ---
GPS - 7/8
IOMG +1 3/8
KLAC + 1/2
RIDE + 3/8
S + 3/8
SNIC - 1/4


Today's Numbers


Day Month Year History FOOL +0.08% 5.79% 70.63% 89.45% S&P 500 -0.07% 1.86% 28.97% 29.21% NASDAQ -0.55% 2.12% 40.70% 46.91% Rec'd # Security In At Now Change 8/5/94 340 AmOnline 14.55 80.50 453.43% 5/23/95 510 Ride Inc. 9.91 24.25 144.78% 5/17/95 335 Iomega Corp 15.11 33.13 119.17% 4/20/95 155 The Gap 32.55 45.63 40.17% 8/5/94 165 Sears 28.93 38.88 34.40% 8/11/95 95 GenElec 57.91 65.50 13.10% 8/11/95 110 Chevron 49.00 48.13 -1.79% 8/24/95 130 KLA Instrm 44.71 41.50 -7.18% 8/24/95 100 AppldMatl 57.52 49.75 -13.52% 12/23/94 340 SonicSol 14.48 7.50 -48.21% Rec'd # Security Cost Value Change 8/5/94 340 AmOnline 4945.56 27370.00 $22424.44 5/23/95 510 Ride Inc. 5052.44 12367.50 $7315.06 5/17/95 335 Iomega Corp 5063.13 11096.88 $6033.75 4/20/95 155 The Gap 5045.25 7071.88 $2026.63 8/5/94 165 Sears 4772.65 6414.38 $1641.73 8/11/95 95 GenElec 5501.87 6222.50 $720.63 8/11/95 110 Chevron 5389.99 5293.75 -$96.24 8/24/95130 KLA Instrm 5812.49 5395.00 -$417.49 8/24/95 100 AppldMatl 5752.49 4975.00 -$777.49 12/23/94 340 SonicSol 4924.18 2550.00 -$2374.18 CASH $5969.86 TOTAL $94726.74