Fool Portfolio Report
Monday, May 20, 1996
(FOOL GLOBAL WIRE)
by David Gardner (MotleyFool)
ALEXANDRIA, VA, May 20, 1996---I have a dream!
Four score and seven years ago. . . .
I come to bury Caesar, not to praise him.
Give me liberty, or---
. . . wait, who am I kidding? This is plagiarism. I can't just co-opt the words of our great bygone orators for tonight's Fool Portfolio report! But given the magnitude of what's happening with The Fool Portfolio, the people of Fooldom, and The Motley Fool in general, I have no choice but to try vainly to grasp for elevated phrases. . . High American, shall I call it, in an age so hostile to anything that might be called "high" language? So here am I, a mere Fool, kneeling before you tonight in parti-colored garments, arms spread wide, asking your forgiveness. Because I simply cannot conjure words glib and strong enough to explain it all.
8.99% for today? Our third-straight month of double-digit returns? 94.57% since January 1st? 204% over the past 52 weeks? 263% since our debut August 4, 1994? What's going on here?
Geez. Um. . .
Neither a borrower nor a lender be.
The only thing we have to fear is---
. . . no, no, darn it. I just don't think I can't do it. I can't jumpstart myself to the necessary eloquence.
Iomega rose better than 13 bucks today, closing at a bid of $82 3/8 on the eve of its 2-for-1 split. Tomorrow, the stock will be in the mid-$40's again, so don't be disturbed when you see it there. Inevitably, a few will be. . . maybe it's just your unFoolish friend who bought the stock expressly on your tip, and needs to read our FAQ on stock splits. Who knows? Anyway, be prepared.
Predictably, our Iomega folder today was home to ecstatic commentaries. That's fine with me. . . you have to celebrate sometimes. I expect that a whole bunch of people are sick, sick, SICK of hearing Foolish readers celebrating. . . but those are probably people who don't own Foolish stocks. Hey, whaddaya want? You have to jump for joy when something doubles, or triples. And you have to keep jumping for joy when you've had the guts enough to hold to a SIXTEEN-bagger. When all about you were losing their heads and blaming it on you, you held. You celebrate.
Our own MF Chiros, who has been for so long the savviest analyst of Iomega stock that we've had the pleasure of regularly reading, put a note in the folder tonight suggesting a few reasons for the move. In addition to the obvious speculation that surrounds any stock split, Charles pointed out that tomorrow Iomega begins its "roadshow," essentially marketing its products and strategies before institutional clients. Insofar as this entails getting the "word" out to big money, this can be bullish news when it involves a personality as strong as Kim Edwards. Further, Charles stated his expectations that the secondary offering involving J.P. Morgan and Hambrecht & Quist would likely induce a BUY report from J.P. Morgan in the coming weeks. Bullish as well.
Hey, like anyone else, Charles is just offering whatever reasons he can drum up to make sense of this amazing stock. Short squeezes play into it as well, no doubt. . . but that's part of the game. What goes around comes around. The chickens always do come home to roost. The same short sellers who depressed the price in the first place are now contributing to our profits.
Three other Fool stocks rose greater than $2 on this amazing day. Foolish Four musclemen General Electric (up $3 1/8) and Chevron (up $2 1/2) threw some punching bags around in the gym today and roused fear in their opponents. General Electric today announced the acquisition of high-flying AmeriData Technologies (the $1.5 billion computer products, services, and consulting firm) for $16 per share. Our GE stock is now up 46% since last August's Dow Day. Meanwhile, Chevron sports a 27% gain. Hey, we'll take those just about ANY year.
Further, Medicis hit a new all-time high Monday, trading 345,000 shares and leaping $2 3/8 to bid $32 5/8. Our present return of 17% on MDRX puts it right in line with the NASDAQ's performance since our January purchase. No biggie either way, but nice to see more recognition of this company's strong earnings growth, financial statements, and management. No news from Phoenix, today.
OK, I'll just close, then, with a few quotations I WILL attribute. The first comes from Thomas Jefferson, who very aptly (to my mind) explains the beauty of Fooldom's social structure. Writing in an age where so much of the wealth of the world was tied up in other countries by a politically protected elite, Jefferson said simply, "There is a natural aristocracy among men. The grounds of this are virtue and talents."
This aristocracy is alive and well in Fooldom today, and totally open to you; ANYONE can sign on and participate, join it through hard work, or just gain the benefits by mixing with it. This new aristocracy, Jefferson's vision realized, is built squarely on merit, and is composed simply of talented people who are intellectually honest, scrupulous, open-minded, have a self-effacing sense of humor and love of life, understand the heck out of American business, and give of their knowledge freely in this public forum. They are our staff, more than 100 designated "MFs" you've come across in one or another nook or Foolish cranny. And in many other cases, of course, they are also our paying readers, readers new and old, people who have come to Fooldom through an article, a friend, a book, or (yes) maybe even a Dan Dorfman report.
Every day, this aristocracy must continue to earn its merit, doing so by voluntarily helping you answer questions that the Wise of this world would've made you pay to answer, or wouldn't have answered straight because their livelihood depends on obfuscation. And this aristocracy is increasingly being recognized by Wise and unWise alike for the powerful, beneficial force it is. Because, my friends, it is winning.
Which leads me to my closing quotation, words from one of my favorite 20th-century orators, Winston Churchill. Sitting down at the end of one of the greatest wars ever fought, Sir Winston---such an integral part of winning it---wrote these simple words in a 1948 epigraph:
"Moral of the Work. In war: resolution. In defeat: defiance. In victory: magnanimity. In peace: goodwill."
---David Gardner, May 20, 1996
Day Month Year History
FOOL +8.99% 15.83% 94.57% 263.31%
S&P 500 +0.63% 2.90% 9.29% 46.85%
NASDAQ +0.51% 4.84% 18.62% 73.30%
*Scroll down or expand screen for full portfolio accounting
AMER + 7/8 ...CHV +2 1/2 ...GE +3 1/8 ...GPS + 3/8 ...IOMG +13 1/8 ...KLAC ---...MDRX +2 3/8 ...S - 1/2 ...
Rec'd # Security In At Now Change
5/17/95 1005 Iomega Cor 5.04 82.38 1535.09%
8/5/94 680 AmOnline 7.27 54.50 649.36%
4/20/95 310 The Gap 16.28 33.25 104.30%
8/5/94 165 Sears 28.93 49.88 72.43%
8/11/95 95 GenElec 57.91 84.50 45.90%
8/11/95 110 Chevron 49.00 62.00 26.53%
1/29/96 250 Medicis Ph 27.86 32.63 17.11%
8/24/95 130 KLA Instrm 44.71 29.50 -34.02%
Rec'd # Security Cost Value Change
5/17/95 1005 Iomega Cor 5063.13 82786.88 $77723.75
8/5/94 680 AmOnline 4945.56 37060.00 $32114.44
4/20/95 310 The Gap 5045.25 10307.50 $5262.25
8/5/94 165 Sears 4772.65 8229.38 $3456.73
8/11/95 95 GenElec 5501.87 8027.50 $2525.63
8/11/95 110 Chevron 5389.99 6820.00 $1430.01
1/29/96 250 Medicis Ph 6964.99 8156.25 $1191.26
8/24/95 130 KLA Instrm 5812.49 3835.00 -$1977.49