Fool Portfolio Report
Wednesday, August 20, 1997
by David Gardner (DavidG@fool.com)
ALEXANDRIA, VA (August 20, 1997) -- So geez, should I just reprint yesterday's report?
The market Wednesday did pretty much the same thing it did Tuesday, as the S&P 500 rose 1.44% (1.48% yesterday), the Nasdaq up 1.75% (1.99% yesterday), and the Fool unable to keep up once again, up 1.01% (up 1.06% yesterday).
Consider as well that pretty much the same stocks rose again for us today, on no news, and you may be wondering why you showed up here tonight! Ah, but this is The Motley Fool, baby... you're ALWAYS going to find something titillating even when we mindlessly made $1,500 with no story behind it, today.
So let's first crank up the machine with a brief kudos for KLA-TENCOR (Nasdaq:KLAC). This week's market rally hasn't been much fun for us overall, since our long-term top dogs America Online and Iomega have been asleep and snoring loudly. (Yeah, dogs snore.) But it has been fun to watch KLAC. The stock closed yesterday at a new all-time high of $69 5/16. Today, it rocketed upward $6 1/8 further, closing at a bid price of $75 3/8.
Last week, I initiated the KLA Watch, which is the vigil that we're holding until this fourth-best-performing Fool stock finally exceeds the market averages. We bought it two years ago this month, and as of a year ago the stock had been cut in half in an up market. "Sell the dog, you Fools!" some were saying. Fortunately, we held our shares of this fine company, and today we've seen the price rise from its low of $17 1/2 to over $75 (in less than a year!). Following today's rise, here's our KLA Watch total:
S&P 500 +68.602%
Yep, that's right... both are up 68.6%, but KLAC is nosed out by a mere 0.016%! Keep in mind, dear Fools, we price our Nasdaq stocks conservatively at the bid (in unWise fashion), so I'm giving you the return at $75 3/8. The stock actually closed at $75 5/8, but we simply can't celebrate yet. (We're shakin' up the bubbly, though.)
Y'know this whole thing is just one of those uplifting stories that can only ever be appreciated by buy-and-hold investors. Gotta love it.
Titillating item #2 regards TRUMP HOTELS & CASINO RESORTS (NYSE:DJT): Did you read the Wall Street Journal feature article today entitled "Trump Considers Buying Back Trump Hotels' Depressed Stock"? Wall Street appears to have liked it, juicing up this unpopular stock $9/16. There was nothing particularly new in the article for anyone who's been following this company and stock, though the writer Christina Binkley did an excellent job in trying to make some sense of it all.
The idea is that The Donald is thinking of buying his company back and making it private, following its unsuccessful public existence ($14 at the IPO in March of 1995, closing at $10 13/16 today). Trump has used the public company to divest himself of his debt-ridden gaming properties, as the company initially sold Trump Plaza in the IPO, and later acquired the Taj Mahal and Trump's Castle. Blah blah blah... you already know this. What sort of price this stock would command in a buyout situation, and Trump's willingness or ability to do this, these are all matters of pure speculation. We're still short, of course.
In Foolish fashion, I cut to the quick and quote for you the two most interesting lines in the article. The first regards the fortune of his company and his stock: "Ultimately I'll win because ultimately I'll always win." And, on a miscellaneous note: "The company also has introduced a glossy magazine, Trump Style, and a spring water, Purely Trump." The good comic resists making any joke when he recognizes a scenario that is, in itself, inherently comic.
Finally tonight, an inspiring Foolish tale. An incoming freshman to the University of North Carolina at Chapel Hill named Tyrell Godwin did a very Foolish thing this week. Last spring, Godwin accepted a Morehead Scholarship (the same one I had at UNC), being both a star baseball and football player as well as the number one student in his class. (In addition to being a better student than I was, Tyrell is also a better football and baseball player.)
Along come the New York Yankees, which in the recent baseball draft selected Tyrell as their first-round pick. The Yankees then offered Tyrell two million bucks to sign. At midnight, Monday, Godwin turned them down, saying he "wanted to be a kid and go to college like everyone else... I like what I'm doing."
So yesterday, Tyrell attended his first college class at 8 AM, which was chemistry. He's a medical student. His attendance of that class officially voided all Yankee rights to him (wasting the pick), and prevents him from re-applying to the baseball draft for three years.
He'll instead suit up for the football team, and should see some playing time at running back this year... on the side, racking up a 4.0, eh?
Fool on, Tyrell... and everyone else!
-- David Gardner, August 20, 1997
Drip Portfolio --
Working towards 20 year buys.
Fool Message Boards -- Speak your mind!
Boring Portfolio -- Boring holds Cisco, Oracle.
Fool Four Portfolio -- 23% annually, historically.
Evening News -- All the news, early.
Port Tracker -- Update your portfolio daily.
Daily Double -- Woah... it's flyin'!
Daily Trouble -- Cut in half! A deal?
Fribble -- A fun lesson from readers.
Stock Change Bid ---------------- AOL +1 1/4 67.94 T - 1/8 40.25 ATCT + 1/8 4.75 CHV + 9/16 79.50 DJT + 9/16 10.81 GM + 5/16 63.44 INVX +2 1/4 35.75 IOM --- 22.94 KLAC +6 1/8 75.38 LU + 5/8 85.56 MMM + 5/16 93.25 COMS --- 54.50Day Month Year History FOOL +1.01% 3.26% 19.34% 218.50% S&P: +1.44% -1.57% 26.81% 104.92% NASDAQ: +1.75% 2.19% 26.16% 126.15% Rec'd # Security In At Now Change 8/5/94 355 AmOnline 7.27 67.94 834.49% 5/17/95 980 Iomega Cor 2.52 22.94 810.22% 10/1/96 42 LucentTech 47.62 85.56 79.69% 8/24/95 130 KLA-Tencor 44.71 75.38 68.58% 8/11/95 125 Chevron 50.28 79.50 58.10% 8/12/96 110 Minn M&M 65.68 93.25 41.98% 6/26/97 325 Innovex 27.71 35.75 29.02% 8/12/96 280 Gen'l Moto 51.97 63.44 22.06% 8/13/96 250 3Com Corp. 46.86 54.50 16.30% 8/12/96 130 AT&T 39.58 40.25 1.70% 4/30/97 -1170 *Trump* 8.47 10.81 -27.67% 10/22/96 600 ATC Comm. 22.94 4.75 -79.29% Rec'd # Security In At Value Change 8/5/94 355 AmOnline 2581.87 24117.81 $21535.94 5/17/95 980 Iomega Cor 2594.53 22478.75 $19884.22 8/24/95 130 KLA-Tencor 5812.49 9798.75 $3986.26 8/11/95 125 Chevron 6285.61 9937.50 $3651.89 8/12/96 280 Gen'l Moto 14552.49 17762.50 $3210.01 8/12/96 110 Minn M&M 7224.44 10257.50 $3033.06 6/26/97 325 Innovex 9005.62 11618.75 $2613.13 8/13/96 250 3Com Corp. 11714.99 13625.00 $1910.01 10/1/96 42 LucentTech 1999.88 3593.63 $1593.75 8/12/96 130 AT&T 5145.11 5232.50 $87.39 4/30/97 -1170*Trump* -9908.50 -12650.63 -$2742.13 10/22/96 600 ATC Comm. 13761.50 2850.00-$10911.50 CASH $40625.59 TOTAL $159247.65