Fool Portfolio Report
Thursday, June 6, 1996

Thursday, June 06, 1996 (FOOL GLOBAL WIRE)

Keith Pelczarski (MF Czar)

ALEXANDRIA, Va., June 6 -- The June Fool Portfolio massacre continued today, as the Fool coffers were lightened by another 3.05% today, putting us down 10.12% for the month (also for this week). Pretty grim performance for what has otherwise been a pleasant beginning to the month here at HQ.

So what are we doing to control the bleeding? Did we hold an emergency portfolio meeting, circling the motley wagons? Nope. Are we selling all our stocks and going to cash? Heck, no -- the day we do that is the day we hang up our belled caps.

As our Foolish faithful are well aware, the Fool philosophy on investing is built upon long-term perspective and patience. Sure, we keep an eye on the newswires for developments that might affect the fundamental stories of the FoolPort stocks, but four days does not an annual performance make.

No, we just think long-term, and the frown turns upside down. If we need figures to turn up the corners of our mouths, we just look at year-to-date returns: Fool: 81.48%, Nasdaq: 17.15%, S&P 500: 9.27%. When a portfolio has grown as rapidly as the Fool's has, some ugly downtime has to be expected.

Beyond that, the Fool isn't relying on the portfolio for next month's rent. It's been said before, but bears repeating -- only invest what you can afford to wait on. While the stock market is a great savings vehicle over the long term, it can really coldcock you if think it's quick, easy money.

[Descending from the soapbox now.]

Okay, kids, it's fun time! I've scoured the wires, and I've got the skinny on the Fool stocks. It's interesting to note that the three winners today were the three Dow heavies, General Electric, Sears, and Chevron. It's nice to have that large-cap ballast in a portfolio to help ride out choppy waters.

May retail figures were announced today, and Gap and Sears both continued their profitable ways. The Gap's May sales rose 27%, to $358 million, versus $282 million last May. Same store sales for May rose 8%, while sales in the past 17 weeks were up 9% over the comparable period last year. Despite the continued increase in sales, Gap fell $1 1/4 to $34 5/8.

Sears, on the other hand, rose $5/8 to $52 3/8. Total May revenues for Sears increased by 12.1% over May of 1995, as Martinez & Co. raked in $2.68 billion, compared to $2.39 billion last May. Domestic store revenues for May jumped 14%, from $1.8 billion to $2.05 billion. May same store sales also put in a good showing, rising 10.2% over last year.

Another Dow stalwart, General Electric, rose $1 7/8 to $86 1/4. There are a number of items on GE on the newswire, so I'll make the explanation of today's gain a multiple choice question -- you can play along at home:

a) Taiwan's cabinet said it would appeal the Taiwanese parliament's cancellation of funding for two nuclear reactors, a contract with GE worth $1.8 billion U.S.

b) George Stansky, new manager of the Fidelity Magellan fund is said to be sweet on GE, as well as a few others, and may very well throw part of the multi-billion dollar proceeds of the Magellan bond position toward Fairfield, CT, where Jack Welch holds court.

c) Eastman Kodak affiliate Qualex and GE will do some cross-promotions in late summer. Wanna bet that one of the "Must See" season premieres will have a Kodak Fun-Saver product placement?

d) Morgan Stanley analyst Jennifer Pokrzywinski upgraded GE to strong buy from outperform. She upped her '97 EPS estimate to $4.97 from $4.41, and raised her price target to $102 from $86.

e) All of the above.

Wasn't that a hoot?

There wasn't a lot of news on the four Nasdaq issues in the FoolPort, other than the flap about the Cabot newsletter. For details on that, I'll defer to the Fool Evening News, which you can get by clicking the "Evening News" button on the main Fool screen.

In the interactive spirit of the multiple choice news, let me offer up a few Fool Portfolio Mad Libs for you to print out and complete. I know that there are some who read this column who don't always agree with our views, so tonight, I'll let you make up your own news. For those unfamiliar with Mad Libs, it's really easy to play -- just fill in your own words in the blank, ideally words that fall in the category mentioned in the parentheses.

So, when the parentheses are around the word "noun," write a noun in the blank space. It works to best effect when you get a random word of said type from someone who can't see what the rest of the text says. Anyway, without further ado, Foolish Mad Libs:

America Online stock _______ (past tense verb) $1 1/4 to close the day at $46 3/8. The continued ________ (market euphemism for train wreck) was cheered on by a ________ (adjective) column in the _______ (a street) Journal. The stock is also under pressure from downgrades by _______ (brokerage firm), and there is concern about America Online's ability to _______ (verb) in the next few quarters.

Iomega _______ (past tense verb) down 4.7% percent today based on the _______ (adjective) _______ (noun) of _______ (ill-informed market prognosticator). The stock closed at $37 3/4.

Medicis and KLA announced a deal to provide _______ (pharmaceutical product) to _______ (semiconductor manufacturer). Medicis was down $1 1/4 to $33 3/4, and KLA Instruments fell $1 to $25.

Tonight's Fool Portfolio recap was brought to you by Speke Wilson, the letters C and G, and the number 3.

Fool on!

ANOTHER FOOLISH THING: Tom & David will be on the Discovery Channel's "Cyberlife" Friday at 7:25 & 11:25 pm, and again on Saturday at 2:30 pm. Get a look at life at Fool HQ.

Transmitted: 6/6/96

Today's Numbers

Day Month Year History

FOOL -3.05% -10.12% 81.48% 238.88%

S&P 500 -0.80% 0.58% 9.27% 46.82%

NASDAQ -1.33% -0.88% 17.15% 71.14%

*Scroll down or expand screen for full portfolio accounting

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

Rec'd # Security In At Now Change

5/17/95 2010 Iomega Cor 2.52 37.75 1398.63%

8/5/94 680 AmOnline 7.27 46.13 534.21%

4/20/95 310 The Gap 16.28 34.63 112.75%

8/5/94 165 Sears 28.93 52.38 81.07%

8/11/95 95 GenElec 57.91 86.25 48.93%

1/29/96 250 Medicis Ph 27.86 33.75 21.15%

8/11/95 110 Chevron 49.00 59.13 20.66%

8/24/95 130 KLA Instrm 44.71 25.00 -44.09%

Rec'd # Security Cost Value Change

5/17/95 2010 Iomega Cor 5063.13 75877.50 $70814.37

8/5/94 680 AmOnline 4945.56 31365.00 $26419.44

4/20/95 310 The Gap 5045.25 10733.75 $5688.50

8/5/94 165 Sears 4772.65 8641.88 $3869.23

8/11/95 95 GenElec 5501.87 8193.75 $2691.88

1/29/96 250 Medicis Ph 6964.99 8437.50 $1472.51

8/11/95 110 Chevron 5389.99 6503.75 $1113.76

8/24/95 130 KLA Instrm 5812.49 3250.00 -$2562.49

CASH $16434.53

TOTAL $169437.66