Fool Portfolio Report
Wednesday, January 31, 1996

***Attention Phoenix Phools!!! We've just made a last minute addition to the Fool Book Tour -- Thursday, February 1st from 3:30 to 4:30 PM at the Borders Books on East Camelback Road. Phone the neighbors! Wake the kids! Bring your pets!***

by Keith Pelczarski (MF Czar)

--(Alexandria, VA, Jan. 31)-- Like the mythical Phoenix (we're not talking the city here), The Fool Portfolio rose from the ashes today, sparked by a fiery afternoon performance on the part of The Gap, Inc. GPS was up $4 1/8 to close a $47 1/8. There was no news that this Fool could see, despite a serious crusade for information. I checked every wire, called Gap IR, heck, I even sent MF Fletch down to the local Gap Outlet to see if there had been a big run on khakis.

Perhaps the Wise have deemed that today's 25 basis point cut in the Fed Funds and Discount rates are going to bring shoppers to the mall in droves, plastic in hand, buying every pair of Gap jeans in sight. Probably not, though, I don't think most folks can discern a 25 basis point difference on a credit card any more than I could discern a pea under my mattress. Of course that's assuming that the credit companies even trickled that cut down to the consumer, which isn't necessarily tops on their list. Fie! Fickle! I've succumbed to the evil, dark side of the Force, otherwise known as speculation. I might have my Fool light saber revoked for that one.

Fools aren't concerned about the gyrations and speculations of the wing-tipped Wise guys, and you shouldn't be, either. With the historical record of the S&P 500 versus all other types of investments, why make yourself dizzy jumping in and out and hither and yon? Do your own thorough research on great companies and let the power of the equities market be your ally (not to mention using the Force).

Or alternatively, you can do ten minutes of research a year and let one of the Beating the Dow strategies be your best friend. It not only generates profits, but also leaves you with more free time. Hey, if it's free, take it (or as Obi Wan would say, let the Force flow through you).

Wearing the black hat to the Gap's white one in the Fool Portfolio space opera today was IOMG. Iomega dropped $2 5/8 today to $44.25 on a similar dearth of news. Maybe the rise in the......(No, Luke!!! Speculation can only lead you on the path to the dark side!)

I have no idea why IOMG dropped either. If it makes you feel better, you can use the "profit taking" phrase that everyone else uses when a stock drops and they can't explain why. Or, if you want people to look at you funny, blame it on Darth Vader.

Other mystery performers were Sears (S) and General Electric (GE), both up $1 1/4. They seem to have benefitted from the broad economic benefits of a rate cut and of the speculation of the Empire, er....the Street.

In the arena of things I can explain, AMER was up $1 3/8 on the announcement that they opened up Canada Online. There was an instant drop in the price of McKenzie & McKenzie (NYSE: EH?) on the news, as traders speculated that Canada Online would quickly dominate the entertainment scene in the Great White North.

In other AMER news, William Razzouk, former Fed-Ex COO, was named President and Chief Operating Officer (a newly created position) of AOL. This seems like a great fit, as this is a medium which requires the same type of day-to-day attention that a shipping carrier like Fed-Ex does. As the company grows to the five million mark and beyond, a capable COO is necessary to handle the daunting administrative aspects of such a large endeavor.

AMER is once again a five-bagger for the Fool Portfolio on today's rise. As for the other issues in the 'Foolio, AMAT, CHV, KLAC and MDRX all opened, traded, then closed. And that's no speculation. May the Farce be with you.

Today's Moves

AMER +1 3/8
AMAT - 1/4
CHV + 1/4
GE +1 1/4
GPS +4 1/8
IOMG -2 5/8
KLAC + 5/8
MDRX - 7/8
S +1 1/4

Today's Numbers

Day Month Year History FOOL +0.90% 6.03% 6.03% 97.99% S&P 500 +0.93% 3.26% 3.26% 38.75% NASDAQ +0.81% 0.73% 0.73% 47.16% Rec'd # Security In At Now Change 8/5/94 680 AmOnline 7.27 44.63 513.58% 5/17/95 335 Iomega Corp 15.11 44.25 192.78% 4/20/95 155 The Gap 32.55 47.13 44.78% 8/5/94 165 Sears 28.93 41.50 43.47% 8/11/95 95 GenElec 57.91 76.75 32.52% 8/11/95 110 Chevron 49.00 52.00 6.12% 1/29/96250 Medicis Pha 27.75 28.13 1.35% 8/24/95 130 KLA Instrm 44.71 29.13 -34.86% 8/24/95 100 AppldMatl 57.52 37.00 -35.68% Rec'd # Security Cost Value Change 8/5/94 680 AmOnline 4945.56 30345.00 $25399.44 8/24/95 100 AppldMatl 5752.49 3700.00 -$2052.49 5/17/95 335 Iomega Corp 5063.13 14823.75 $9760.62 4/20/95 155 The Gap 5045.25 7304.38 $2259.13 8/5/94 165 Sears 4772.65 6847.50 $2074.85 8/11/95 95 GenElec 5501.87 7291.25 $1789.38 8/11/95 110 Chevron 5389.99 5720.00 $330.01 1/29/96250 Medicis Pha 6962.49 7031.25 $68.76 8/24/95130 KLA Instrm 5812.49 3786.25 -$2026.24 CASH $12147.13 TOTAL $98996.51