Fool Portfolio Report
Friday, June 14, 1996
Friday, June 14, 1996 (FOOL GLOBAL WIRE)
by Tom Gardner (TomGardner)
ALEXANDRIA, VA, June 14, 1996 --Wow, that was a fascinating week.
On Monday, Iomega announced that the Zip drive would be featured in two new models of IBM's Aptiva. Iomega rose $5 3/4 and was largely responsible for the 6.83% climb in Foolishness on Monday.
On Tuesday, Sears fell $1 3/8, General Electric drooped $1 3/8, and The Fool Portfolio slid back 2.18%. Oh, Iomega was largely responsible for that drop, giving back $2-worth of Monday's gains.
Wednesday, The Fool Portfolio fell 1.28%, and this time America Online did the damage, falling $2 7/8 after meeting with analysts in the morning. KLA Instruments was up $1 1/4 on the day. [Editor's Note: The KLA report due this week will be out before the weekend ends. Trust me.]
Thursday brought more misery, as we spied those Monday gains of 6.38% slipping through fingers like finely-ground glass. Who would've thought that The Fool Portfolio could close down a full percentage point on a day that Medicis Pharmaceuticals rose $13 a share, or 40%? The culprit? None other than Iomega, which dropped back another $2 1/2.
Heading into this morning, Iomega had given back $4.63 of the $5.75 gains claimed on Monday. The Fool Portfolio had risen that 6.8%, only to relinquish more than 60% of those profits by Thursday midday.
And the US equities market stepped on The Fool's ear today, dropping us 2.18% on dollar drops by Iomega and Medicis, and the two-dollar nicking of America Online.
So what happened to all of our gains on Monday? Check out the final numbers for the week:
Security Last This Change Change
Iomega 38.00 38.13 +0.03% +$251
AOL 48.75 45.00 -7.69% -$2550
Gap 34.38 33.38 -2.90% -$310
Sears 52.25 51.13 -2.16% -$186
GE 86.00 85.75 -0.03% -$24
Medicis 34.00 44.25 +29.41% +$2562
Chevron 59.00 59.63 +1.07% +$68
KLA 24.75 25.25 +2.02% +$65
TOTAL (with change added) -$121.87
The Fool Portfolio lost a whopping $122 this week, or -0.07%.
I could aim for impassioned speech, oratory in the finest of traditions. I could give our critics some air time, chattering on about how they don't appear to understand the value of rapid and high-margined growth. As if it might help bushwack us onto an unwindy pathway, unhindered, into the 21st century. No chance.
I could then weave my way over into coverage of our Fool stocks. Why we think the market misunderstands some of them. Why we continue to manage a portfolio with more than 60% of its value tied up in two stocks. What excuse we have for the unacceptable performance of our KLA Instrument shares. What we think the long-term ramifications are of the CJ-Lawrence initial coverage of Chevron with a "Hold" rating today.
I might close with a tip of the black Foolcap heading into the weekend. I might gleefully point to our (Street) unmatched 83.7% returns for fiscal 1996 and why I think every single individual with money to earn, money to save, and money to invest ought to find a way to gain access to this forum.
Then I'd slam the door on the week with some mention of how I plan to annihilate David in tennis tomorrow afternoon, hitting ball after ball off his forehead [my style of catch-up ball(d) after that comment on CBS This Morning], and how I hope you too, Fool, will get a chance to be out of doors this weekend with family, close friends, and maybe only a one-hour dip back into Fooldom to see what Randy and squad have come up with in our Weekend Fool's Gold report.
But I won't say any of that. Cause nothing really happened this week on a macro-Fool level. The Fool Portfolio lost $121.87. True, we don't want to close June 14th out without just saying the word "Medicis" and smiling. And then referring to Drake's great posts in the MDRX folder about buying rapidly-growing small-cap companies that have yet to be discovered by Wall Street and how much Foolish fun it is to watch the process unfold.
But. . . to now in earnest conclude, Fool, consider doing something unpredictable and kind this weekend. Without all this information, without the conversations herein, would any of us know so much about the market, would any of us have done so well over the past two years, and be so optimistic about our ability to beat the Dow time and time again, year after year, decades onward. . . ? Would any of us understand as clearly as we do now why we ought to save money, how to manage those savings, and truly how little controversial or indecipherable these equity markets are?
Tom Gardner, June 14, 1996
Day Month Year History
FOOL -2.18% -9.02% 83.69% 243.00%
S&P 500 -0.31% -0.49% 8.10% 45.26%
NASDAQ -1.02% -2.44% 15.30% 68.44%
*Scroll down or expand screen for full portfolio accounting
AMER -2...CHV ---...GE ---...GPS - 1/8 ...IOMG -1... KLAC - 5/8 ...MDRX -1...S - 1/2 ...
Rec'd # Security In At Now Change
5/17/95 2010 Iomega Cor 2.52 38.13 1413.52%
8/5/94 680 AmOnline 7.27 45.00 518.74%
4/20/95 310 The Gap 16.28 33.38 105.07%
8/5/94 165 Sears 28.93 51.13 76.75%
1/29/96 250 Medicis Ph 27.86 44.25 58.83%
8/11/95 95 GenElec 57.91 85.75 48.06%
8/11/95 110 Chevron 49.00 59.63 21.68%
8/24/95 130 KLA Instrm 44.71 25.25 -43.53%
Rec'd # Security Cost Value Change
5/17/95 2010 Iomega Cor 5063.13 76631.25 $71568.12
8/5/94 680 AmOnline 4945.56 30600.00 $25654.44
4/20/95 310 The Gap 5045.25 10346.25 $5301.00
1/29/96 250 Medicis Ph 6964.99 11062.50 $4097.51
8/5/94 165 Sears 4772.65 8435.63 $3662.98
8/11/95 95 GenElec 5501.87 8146.25 $2644.38
8/11/95 110 Chevron 5389.99 6558.75 $1168.76
8/24/95 130 KLA Instrm 5812.49 3282.50 -$2529.99