Fool Portfolio Report
Friday, June 21, 1996

Friday, June 21, 1996 (FOOL GLOBAL WIRE)
by Tom Gardner

ALEXANDRIA, VA, June 20, 1996 -- Sound and fury signifying nothing, is the first phrase that comes trippingly to my keyboard today as I endeavor to describe the Fool Portfolio on Thursday, the 20th of June. Stuff went up, stuff went down, and we ended up about even, up 0.01% for the day. Shockingly similar, nota bene, to the S&P 500, which doubled (dag nabbit) our daily return with a skull-crushing 0.02% show. The NASDAQ, which looked a lot worse around 1 PM ET today, closed down a percent... 11 points' worth. Heck, the NAS was actually off 27 points around 1:15 today, the second 2.5% daily drop this week! But today, that didn't keep.

America Online had a press release detailing a new area released online today, developed by Hecklers Online. I mention it for those who, like me, enjoy computer games and enjoy watching whatever the Hecklers come up with next. This one's called The Antagonist, and is done with the Hecklers' usual panache... a great new addition online for computer gamers. (Keyword ANT, for those interested.)

Don't mistake that launch with more weakness in AMER stock, which dropped another buck today, in line with the NASDAQ feebleness. Other one-dollar Fool losers included Sears (off $1 1/4) and Medicis (below that key $40 two-over-one hyperresistance level mentioned yesterday), down $1 1/4 as well to $39.

OK, now go over to the Fool computer hardware stocks and thereby hangs a different tale. Iomega, for instance, ran strong and contrary to the market all day long, closing with a gain of $5/8. And poor ol' KLA Instruments, oft-forgotten Fool loser, stormed the barricades for a $1 3/8 gain.

KLA up? That stock the Fools elected to KEEP instead of Applied Materials (NASDAQ:AMAT), a month and a half ago? Well, let's take timeout for a quick "accountability check" to compare the performances of these two Foolish dogs since we loosed one and kept the other on leash, on May 2nd.

AMAT stood at $40, when we jettisoned it. Go back to that folder and review the comments and I can tell you, they were not very comforting to us at Fool HQ. We blew it, we were told. Well, we did blow it a bit... our writeup contained an inaccuracy regarding Applied Material's prospects with the next-generation 200-300 millimeter wafers. We were more pessimistic than we should have been, and since our readers as a GROUP generally know a lot more than us INDIVIDUALLY, we tend to listen and pay deference. We corrected the error.

Anyway, some others were saying, "Why don't you guys ditch KLAC, then, too?" Turns out they were the right ones. Applied Materials -- incorrect bulls, correct bears, and all -- is now down from $40 to $31 1/2 today (-21.25%), and geez, KLA Instruments is down similarly (-21.67% from $30 closing price on 5/1 to today's $23 1/2 close). We're now off 48% with these shares). But we continue to hold KLA Instruments because for the life of us, we've only seen great earnings reports and good forward estimates. The company earned $1.53 through 6/95, is slated for $2.34 through 6/96 and $2.71 through 7/96. Cash strong, flow positive, and all the rest, it still looks decent.

I dunno... call it the weight we choose to wear around our scrawny necks.

I'd like to close tonight by pointing out a great, simple post that came in last night from a guy I've never met, a fellow named simply Rob467. Appearing in the C-Cube Microsystems folder, Rob wrote this:


Subj: Re:Lehman Bro's
Date: 96-06-19 20:58:52 EDT
From: Rob467
Posted on: America Online

Any info... would be helpful. I just bought in today at 33 and would actually buy much more if this falls into the 25 to 28 range. Stock has been overpriced for some time and I think will stabilize (I use this term loosely with Cube) soon and head back up in second half. My broker called Cube a screaming buy at these levels... Appreciate all the good posts both pro and con!!! [Ed.: caps mine]


Exactly, Rob. What I love about The Motley Fool is the conversation that runs back and forth between bulls and bears every day... it's what makes the market, it IS the market, but for the first time you and I have the ability to actually LISTEN to it, learn from it, follow it, even dramatically benefit from it. I really dislike rudeness, ad hominem attacks, and the other things that sometimes result from such discussions. I really LOVE, on the other hand, exactly what Rob reminds us is best-case: "All the good posts both pro and con."

That is the way we learn, my fellow Fools. Let us encourage as many viewpoints as possible, so that we might learn from them; any viewpoint which is scared away or missing LESSENS our opportunity for deeper understanding. And please remember, someone is ALWAYS going to disagree with you, whatever your point of view on whatever subject. In other areas of cyberspace, let 'em rant and rave and chatter on. Here in Fooldom, we celebrate research, thought, work, humor, and those who refuse -- despite whatever else -- to take themselves terribly seriously.

Fool on!

David Gardner, June 20, 1996

(c) Copyright 1996, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.

Transmitted: 6/20/96

Today's Numbers

Day Month Year History

FOOL -0.38% -20.40% 60.72% 200.11%

S&P 500 +0.72% -0.35% 8.26% 45.47%

NASDAQ +0.69% -5.48% 11.71% 63.20%

*Scroll down or expand screen for full portfolio accounting

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

Rec'd # Security In At Now Change

5/17/95 2010 Iomega Cor 2.52 29.88 1086.00%

8/5/94 680 AmOnline 7.27 39.88 448.27%

4/20/95 310 The Gap 16.28 34.25 110.45%

8/5/94 165 Sears 28.93 49.13 69.83%

8/11/95 95 GenElec 57.91 87.00 50.22%

1/29/96 250 Medicis Ph 27.86 39.75 42.68%

8/11/95 110 Chevron 49.00 60.63 23.72%

8/24/95 130 KLA Instrm 44.71 22.00 -50.80%

Rec'd # Security Cost Value Change

5/17/95 2010 Iomega Cor 5063.13 60048.75 $54985.62

8/5/94 680 AmOnline 4945.56 27115.00 $22169.44

4/20/95 310 The Gap 5045.25 10617.50 $5572.25

8/5/94 165 Sears 4772.65 8105.63 $3332.98

1/29/96 250 Medicis Ph 6964.99 9937.50 $2972.51

8/11/95 95 GenElec 5501.87 8265.00 $2763.13

8/11/95 110 Chevron 5389.99 6668.75 $1278.76

8/24/95 130 KLA Instrm 5812.49 2860.00 -$2952.49

CASH $16434.53

TOTAL $150052.66