Fool Portfolio Report
Monday, August 12, 1996
(FOOL GLOBAL WIRE)
by David Gardner
ALEXANDRIA, VA, August 12, 1996 -- The Fool Portfolio went through its historic third Dow Dividend Day with flying colors!
Despite forking over 165 bucks in commissions, and the "slippage" costs that come of bid/ask spreads, we put up a strong final score of 1.56% Monday, putting us back over 30% gains for '96.
With our new five-day rule in play, we could've made our trades any time this week following their Saturday announcement. But as all of these companies were "huge caps," we decided to do the trades at market open this morning... all six of them.
By the end of the day, all four Dow stocks purchased were up. None of them did quite so well as General Motors, the automotive behemoth that today had more Foolish money invested in it than any stock in our portfolio's history. Purchasing 280 shares of GM at $51 7/8 (and paying our standard $27.49 commission), GM's cost basis is a whopping $14,552.49, the first five-figure cost basis in Fool Port annals. We love this... I think it's going to be a great year.
FURTHER, as you'll discover if you've cruised by our main screen, we'll have YET ANOTHER new five-figure cost basis to toss out this week, in conjunction with tonight's announcement that we'll be selling The Gap in order to bring a new stallion to our Foolish Stables, 3Com Corp. (NASDAQ:COMS).
Full details on those trades are up in our Fool Portfolio area, as well as the main screen. In fact, you should spend most of your time tonight reading Tom's two excellent reports on those trades, and tonight's report is abbreviated for that reason.
OK, for those keeping score on your home PC, the full tallies on our trades are just below:
BUYS Price Shares Amount GM 51.875 280 $14552.49 T 54.75 130 $7144.99 CHV 57.875 15 $895.62 MMM 65.875 110 $7273.74 SELLS Price Shares Amount GE 83.75 95 $7928.76 S 44.625 165 $7335.64
When the dust cleared, we had shed our portfolio of its outstandingly profitable General Electric and Sears holdings... perhaps a foolish (small "f") move -- we'll find out -- but as I've written elsewhere, about the only thing in which I put more faith than in GE and Sears is the Foolish Four approach itself, and The Man was telling us to move our money. For the record, Sears closed out unchanged on its final Foolish day, while GE rose over a buck (what's new?).
It feels really good to have new blood in the Foolfolio... sorta like major league baseball's Opening Day, back when it was (y'know) baseball.
And it's definitely a whole new ballgame. Looking over the news wires today, there were so many stories on AT&T that it swelled my Foolish pea brain to even contemplate the impact. If this is a daily thing, maybe we'll just ditch AT&T and put the money in International Paper (the lowest-priced Dow high-yielder) instead.
Then again, if AT&T continues to rise $3/4 every day, we will not sell it.
America Online had a nice rebound today, further guiding the Fool Port higher. Randy Befumo (MF Templar) has created a great fourth-quarter earnings analysis for your benefit... shareholders, this one's a must read. Heck, WALL STREET, this one's a must read. My thanks to Randy for his ongoing fine work.
We'll be back atcha more this week to reflect on the Dow stocks, past and present, and to let you know how our new trades played out. For now, Fool on!
--- David Gardner, August 12, 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.
Day Month Year History FOOL +1.56% 7.00% 31.42% 145.39% S&P 500 +0.55% 4.03% 8.09% 45.24% NASDAQ +0.09% 5.35% 8.19% 58.05% Rec'd # Security In At Now Change 5/17/95 2010 Iomega Cor 2.52 17.25 584.80% 8/5/94 680 AmOnline 7.27 30.25 315.93% 4/20/95 310 The Gap 16.28 36.13 121.97% 1/29/96 375 Medicis Ph 18.57 39.75 114.02% 8/11/95 125 Chevron 50.28 58.38 16.09% 8/12/96 95 Gen'l Moto 51.97 53.00 1.98% 8/12/96 130 AT&T 54.96 55.63 1.21% 8/12/96 110 Minn Minin 65.68 66.00 0.49% 8/24/95 130 KLA Instrm 44.71 19.75 -55.83% Rec'd # Security Cost Value Change 5/17/95 2010 Iomega Cor 5063.13 34672.50 $29609.37 8/5/94 680 AmOnline 4945.56 20570.00 $15624.44 1/29/96 375 Medicis Ph 6964.99 14906.25 $7941.26 4/20/95 310 The Gap 5045.25 11198.75 $6153.50 8/11/95 125 Chevron 6285.61 7296.88 $1011.27 8/11/95 280 Gen'l Moto 14552.49 14840.00 $287.51 8/12/96 130 AT&T 7144.99 7231.25 $86.26 8/12/96 110 Minn Minin 7224.44 7260.00 $35.56 8/24/95 130 KLA Instrm 5812.49 2567.50 -$3244.99 CASH $2151.69 TOTAL $122694.82 Transmitted: 8/12/96