Fool Portfolio Report
Friday, April 26, 1996

by David Gardner (MotleyFool)

ALEXANDRIA, VA, April 26, 1996 -- Well, the Fool Portfolio sold off Friday, dropping 0.71% to close the week. With the exception of America Online's gain of $1 1/8, the rest of our technology stocks sold off, causing us to lose to the market averages on a drab day.

This is the THIRD day in a row we've lost to the market averages. . . looks like we've hopelessly lost our short-term Midas touch. Not that we ever claimed to have one, of course. . . we don't invest for the short term. Anyway, this was the first time the Fool Port put up three consecutive days of losses since March 6-8.

The week. . . ah, well, the week was a fine one. In fact, it was our best ever. For the week, the Fool Portfolio gained an astounding 12.84%. The NASDAQ had a fine week too, rising 4.22%, while the S&P 500 gained 1.30%. Our previous record for a weekly gain was 11.68%, occurring (when else?) the week of March 15th. . . one week after our last bad three-day run.

Let's take a brief gander at '96. Looking over the numbers (which you can do on a daily basis by scrolling through the list below this space), I'm interested to note that the NASDAQ is now well ahead of the S&P 500. . . once again. The NASDAQ's annual return now sits at 12.80%, vs. an S&P 500 showing of 6.09%. Both are above average at this point in the year, certainly, raining on some bear parades. (The market, after, all returns on average about 10.5% a year.) The Fool Portfolio, in the midst of its greatest period ever, closes this week up 63.03% for calendar 1996.

KLA Instruments surrendered $1/2 today. The company announced that it had beefed up its shareholder rights plan, following announcement of a stock repurchase program revealed late yesterday.

As I understand it, the shareholder rights plan dictates that if anyone acquires 15% or more of KLAC stock, certain shareholders are granted "rights" to purchase additional shares of the stock at just HALF the price, enhancing their ability to compete against takeover bidders. Describing itself as bringing its plan more in line with that of other companies today, KLAC finished the statement by asserting that it knows of no current plans on anyone's part to buy the company. More a bookkeeping matter than anything else, perhaps.

Yesterday, we didn't get a chance to mention that KLA had announced its intent to repurchase up to $20 million---or 640,000 of its own shares at current prices---in order to compensate employees in the company's 401(k) plan. The company has about 50.7 million shares outstanding.

These announcements come after a nice run in the stock. KLAC is up about 9 points, greater than 40%, over the past six weeks.

Iomega lost $1 7/8, Friday. I don't think this in any way reflects on CEO Kim Edwards, who appeared on CNBC this morning. "KE," as our readers sometimes call him, apparently did pretty well. I didn't get to see it, still tuckered out from an ABC World News Now interview which aired at 3:20 AM (!) this morning, but I figure the CNBC guys were a bit harder on Kim than the ABC guys were on Tom and me. You can grab full reader reports of the man's comments from our Iomega folder. (Just click the Iomega link in the listbox to the upper right to find that folder, and read the period from 9:30 to 11:00 AM this morning.)

In Salt Lake City, I met up with a couple of analysts who've followed Iomega for more than a year. It's always a pleasure to see Joe Besecker, the jovial analyst from Emerald Research who's helped our readership with on-the-mark estimates and AOL auditorium appearances at several points in the past. And I also shook hands with Howard Rosencrans of H.D. Brous, who as I understand it was the first Wall Streeter to follow IOMG. Howard pointed out to me an inaccuracy in the Foreword to our book. We wrote this:

". . . at the time, no Wall Street analysts were yet following Iomega." (p.8)

Howard did his first report more than a year ago, and we didn't buy the stock till May. I'm not sure that I knew what H.D. Brous was at the time, but that's not the point. (Actually, the real point is that Howard has helped put H.D. Brous on the map as a senior executive analyst through his outstanding coverage of IOMG.) We apologize to Mr. Besecker and Mr. Rosencrans for our oversight. But further, we join with our readers in offering our gratitude for their excellent work in valuing the company, and for speaking to us at our Fool banquet in Salt Lake City Tuesday night. Fool on, gents.

Speaking of which, I close tonight by mentioning that our news staff has put together a nice retrospective of the Iomega annual meeting and Fool events from the perspective of our readers, the Foolish participants. That's on the main screen, and well worth checking out.

Fool away your weekend.

---David Gardner, April 26, 1996

TODAY'S OTHER FOOLISH THING: Baseball fan, are you? No matter which team is YOUR team, we're talking about it in the Fool Dome's Baseball Workshop. Use keyword FOOL DOME here on AOL to locate team and player comments from our editor Gary Gillette, and his talented staff. Editor of "The Scouting Report: 1996," Gary is online with us to help teach you about baseball and keep you on top of the latest. Check it out.

Transmitted: 4/26/96

Today's Numbers

Day Month Year History FOOL -0.71% 28.27% 63.03% 204.41% S&P 500 +0.09% 1.23% 6.09% 42.55% NASDAQ +0.22% 7.76% 12.80% 64.79% *Scroll down or expand screen for full portfolio accounting AMER +1 1/8 ...AMAT - 5/8 ...CHV + 1/2 ...GE ---...GPS + 3/4 ...IOMG -1 7/8 ...KLAC - 1/2 ...MDRX - 1/4 ...S - 3/8 ... Rec'd # Security In At Now Change 5/17/95 1005 Iomega Cor 5.04 48.63 865.18% 8/5/94 680 AmOnline 7.27 66.13 809.20% 4/20/95 310 The Gap 16.28 29.50 81.26% 8/5/94 165 Sears 28.93 50.63 75.02% 8/11/95 95 GenElec 57.91 78.00 34.68% 8/11/95 110 Chevron 49.00 57.88 18.11% 1/29/96 250 Medicis Ph 27.86 28.00 0.51% 8/24/95 100 AppldMatl 57.52 40.50 -29.60% 8/24/95 130 KLA Instrm 44.71 30.00 -32.90% Rec'd # Security Cost Value Change 5/17/95 1005 Iomega Cor 5063.13 48868.13 $43805.00 8/5/94 680 AmOnline 4945.56 44965.00 $40019.44 4/20/95 310 The Gap 5045.25 9145.00 $4099.75 8/5/94 165 Sears 4772.65 8353.13 $3580.48 8/11/95 95 GenElec 5501.87 7410.00 $1908.13 8/11/95 110 Chevron 5389.99 6366.25 $976.26 1/29/96 250 Medicis Ph 6964.99 7000.00 $35.01 8/24/95 100 AppldMatl 5752.49 4050.00 -$1702.49 8/24/95 130 KLA Instrm 5812.49 3900.00 -$1912.49 CASH $12147.13 TOTAL $152204.63