Fool Portfolio Report
Friday, January 26, 1996
**Dave Neiman, alias MF Gameboy, on the road himself this week, swings in from Boston to pinch-hit for Da Fools, who are on the Left Coast leg of their Foolish Book Signing Tour. Monday and Tuesday (heck, part of Wednesday, even) the Gardners will be in the San Francisco Bay area. For more details, check out the San Francisco article in the main Motley Fool listbox. They'd love to see you there.**
by Dave Neiman
--(Boston, MA, Jan. 26)-- I picked up a good book on investing the other day. What caught my eye was the jazzy Zip Drive-colored dust jacket and the mugs of a coupla Fools on the cover. The Motley Fool Investment Guide made it to Minnesota! Will wonders never cease?
I went on a one-man book-sighting expedition, much like the Iomegans amongst us did (and continue to do) with Zip Drives, in an effort to gauge how well they're selling. Surprisingly, Barnes & Noble didn't have the book out when I went there, but it was due to arrive any day now. (This was a couple of days before the official release date.) They'd heard of it, too, and smiled when I told 'em it's a great book and they'll sell hundreds!
In a couple of smaller independent stores, I did find the book, but sad to say, it wasn't prominently displayed---just stocked on the shelves with the other investment books. I "helped" them fix this oversight, by pulling one book out and setting it face-out on the shelf. Instantly, 30 people glanced over and stampeded to the rack. Seems they'd been looking for the book all over the store, and all they needed was a bigger display. . . (ok, not quite, but it made ME feel better!)
Since then, I've been scoping out the stores, just checking to make sure that they have their quota on hand, suitably visible. In fact, this is good exercise, and I encourage anyone wandering into a bookstore to garner the benefits of aerobic Foolishness by doing the same.
Oh, and one more similarity between the Motley Fool Guide and a Zip drive: they both contain the same amount of information.
Speaking of data, let's do a wrap-up of the week's Fool Portfolio action before heading out for the weekend. It seems at first glance contradictory to be Foolish and to give daily reports on the fortunes of the PortFoolio; a Fool isn't concerned with the short-term behavior of stocks, believing that the day-to-day moves of the market and the 'folio are mysteries beyond the ken of a humble Fool. However, the Fool is at the same time dedicated to scrupulous accounting; in that vein, we present the numbers, while at the same time not falling prey to the hypnotizing ebb and flow of the ticker.
Iomega was the stock of the week, rising $8 3/4 in the past five days, as it recovered from its recent slumber. A couple of weeks ago, IOMG had fallen to the mid-30's under the pressure of options expirations and in the absence of fourth-quarter earnings information. However, on Wednesday, the company announced earning of .47/share and a marketing agreement with Hewlett-Packard, and the stock revived. IOMG settled back 1 5/8 points today after a very busy week.
America Online was the second-best performer of the week, pushed ahead on news of a deal with Netscape to incorporate the latter's Web-browser software into AOL. Up $1 5/8 today, AOL was up $6 1/2 for the week.
Our Foolish Dow stocks, GE, Chevron, and Sears, took a breather from their expected 21% annual gain this week, failing to participate in the DJIA's three record-setting efforts this week. GE was up $1 1/4 on the week, Sears fell back $1/8, and Chevron gave up $1 1/2.
This is perhaps the prime example of Foolish accounting with far-sighted vision; although we faithfully record the ups and downs of these three Beating the Dow horses, we won't be taking any action on them---win OR lose---until next August. In fact, the BTD hotline to the broker that we use to turn over these shares each year has been locked in a time capsule, not to be broken until one year from the date of purchase. "He also serves, who only stands and waits."
The Gap, the Foolish mid-cap representative, paced back and forth this week, but ended up right where it started, just up 1/4 in five days. This stock, bought last April, is our fourth-best performer, up 35%+ since purchase. Seems like the longer we hold a stock, the better it does. AMER and S, the two oldest stocks in the Foolio, are #1 and #3 in performance. Gotta be a lesson in there somewhere. Wonder what the Book has to say about that. . .?
Finally, to close out this recap, we can report positive weekly moves on KLAC and AMAT, two capital equipment makers for the semiconductor industry. Caught in the tech industry down draft of the last several months, these two stocks are the only negative performers in the Foolish folio. AMAT moved up $3 1/8 on the week, and KLAC advanced $1 1/2.
That does it for this edition of the Daily Fool Recap. Time for this Fool to go home. And it's going to be cold out, so I'm planning on just curling up in front of the fire tonight, with a good book. A purple one.
AMER +1 5/8 AMAT - 5/8 CHV + 1/8 GE + 3/4 GPS - 5/8 IOMG -1 5/8 KLAC +1 S + 5/8
Day Month Year History FOOL +0.75% 4.06% 4.06% 94.31% S&P 500 +0.74% 0.92% 0.92% 35.61% NASDAQ +0.48% -1.06% -1.06% 44.54% Rec'd # Security In At Now Change 8/5/94 680 AmOnline 7.27 41.25 467.18% 5/17/95 335 Iomega Corp 15.11 48.38 220.07% 8/5/94 165 Sears 28.93 39.88 37.86% 4/20/95 155 The Gap 32.55 43.63 34.02% 8/11/95 95 GenElec 57.91 75.50 30.36% 8/11/95 110 Chevron 49.00 52.50 7.14% 8/24/95 130 KLA Instrm 44.71 29.25 -34.58% 8/24/95 100 AppldMatl 57.52 37.00 -35.68% Rec'd # Security Cost Value Change 8/5/94 680 AmOnline 4945.56 28050.00 $23104.44 5/17/95 335 Iomega Corp 5063.13 16205.63 $11142.50 8/5/94 165 Sears 4772.65 6579.38 $1806.73 4/20/95 155 The Gap 5045.25 6761.88 $1716.63 8/11/95 95 GenElec 5501.87 7172.50 $1670.63 8/11/95 110 Chevron 5389.99 5775.00 $385.01 8/24/95130 KLA Instrm 5812.49 3802.50 -$2009.99 8/24/95 100 AppldMatl 5752.49 3700.00 -$2052.49 CASH $19109.62 TOTAL $97156.50