Fool Portfolio Report
Friday, June 20, 1997
by Jeff Fischer (TMF Jeff)
ALEXANDRIA, VA, (June 20, 1997) -- Well, kids, here we are again at the end of another day, and another week. The thoughts shared in the first three paragraphs of Thursday's Fool recap continue to be the motif of this recap, too -- meaning, we're not going to scour very deeply into the daily happenings, as one's mind is always on the distant future when investing.
ONE. Words that don't belong in an investing dictionary:
Daily Trade Alerts
Ticker symbol hypnosis
Should I just buy gold?
The larger your perspective -- and your ambition to succeed in regard to the "big picture," whole-life approach -- the more likely that you'll become a successful investor over your life-time.
The process is never complete. Consider Buffett, a multi-billionaire, talking about his investing mistakes this spring at his annual shareholders meeting. What matters much more, though, are the winners that he's held onto for years, and still holds.
TWO. Synopsis: the Fool had a great week, gaining 3.54%, while the stock market continued to scale the edge of a cliff. (I picture a tiny person inching their way up Kilimanjaro.) The S&P hiked up 0.61%, and the Nasdaq Composite climbed 1.69%.
The Fool made its strong advance on the heels of Iomega (up $2), America Online (up $1), 3M (up $3 1/2), Lucent (up $4), KLA-Tencor (up $3 5/8), 3Com (up $2), and our short, Trump Hotels (down $1 5/8). Lucent and 3M scored new all-time highs.
THREE. For kicks, the main news from the week:
On Monday 3M (NYSE: MMM) announced that it's forming a new adhesive division, and the stock never looked back. 3M's ability to restructure divisions (and itself) has gained it respect at least as far south as St. Lucia. The new adhesive division springs from a former, similar division, and so it has many parts of the old division adhered to it, but it has an increased focus.
GM (NYSE: GM) continues to languish as auto sales are down slightly from last year, and production as well. The company still has labor strikes to deal with here and there across the country -- like flash-fires.
IOMEGA (NYSE: IOM) rose 10% to prices not seen in over seven months, as the company announced yet another product, this one named Buz. The press release, written with consumers in mind, captures it best:
"Iomega Corporation today announced Buz(TM) multimedia producer, the industry's most affordable audio/video and photo capture solution to bridge the gap between consumers' multimedia content and their PCs.
"For an estimated street price of only $199.95 in the U.S., Buz multimedia producer is a combination video capture card, Ultra SCSI controller and software suite that offers one of the easiest ways to get home movies, photos and music from camcorders, DVD-ROMs, digital cameras, VCRs and laser disks into a personal computer.
"The content captured with Buz multimedia producer can be stored directly to an Iomega Jaz(R) disk, Zip(TM) disk or hard drive."
Fool here again:
Essentially, home videos, pictures, and more, can be stored on your computer, copied electronically, e-mailed to Grandma Bessie in Anchorage, Alaska, and so forth. Handy, eh? That's Iomega. While Intel is pushing relentlessly to speed the advance of each new generation of computers, Iomega is working to increase the practical uses of all computers.
TRUMP HOTELS (NYSE: DJT) fell 13% this week after a Salomon analyst lowered estimates substantially, from $0.65 per share in losses to $0.85 per share for 1997, and from $0.30 in losses next year, to $1.05 in losses. As mentioned in Thursday's recap, increased competition, higher debt interest, and the current business performance were responsible for the lower estimates.
Also this week, Trump announced plans to enter the Detroit market, which should bring the company more debt. We're comfortable with the short for all the reasons stated in the sell report -- and for the projections stated there as well, many of which appear to be coming to light.
LUCENT TECH (NYSE: LU) announced that it and Philips Electronics NV of the Netherlands will combine consumer telephone and related businesses in a jointly-owned company, with annual sales of $2.5 billion. Lucent shareholders enjoyed the news.
Meanwhile, it was stated by the FCC chairman that the rumored merger between AT&T (NYSE: T) and SBC Communications would be "unthinkable." The Wall Street Journal had reported the proposed merger.
The Fool's other stocks moved on typical volatility. KLA-TENCOR (Nasdaq: KLAC) gained nearly $4 on no news. That stock probably has the highest beta (most volatile) of any that the Fool owns (along with IOM and AOL).
That's the news. Daily news can be boring, eh? We'll continue to put much more focus on large ideas and thoughts as we go forward, just as we have in the past.
FOUR. This week -- and forever more -- we offer the Foolish Week in Review. The collection spotlights some Fool features and stories from the past five days.
That's it for now in this corner of Fooldom. Going forward, the Fool Port will continue to be 100% accountable, announce all trades in advance, talk about mistakes as they're reflected upon, and aim to continue to crush the market, while having fun doing so. Over the years, one aim here is to show that beating the market can be done, and that it can be done Foolishly.
Stay Foolish out there!
--Jeff Fischer, Fool (June 20th, 1997)
Boards -- what are Fools saying?
Evening News -- Big movers, up and down.
Port Tracker -- Update your portfolio daily, easily.
Daily Double -- How can you find the next double?
Daily Trouble -- Is there value in this beaten down stock?
Boring Portfolio -- Bore is on the move.
Fool Four -- These giants are... almost too big.
Fribble -- A two minute, fun lesson from readers.
Stock Change Bid ---------------- AOL -1 1/8 59.50 T - 5/8 37.25 ATCT + 1/8 5.13 CHV + 1/8 74.50 DJT - 5/8 10.13 GM - 3/8 55.63 IOM + 5/16 22.50 KLAC --- 49.88 LU + 5/8 73.13 MMM +2 1/4 102.13 COMS +1 1/8 49.81Day Month Year History FOOL +0.75% 7.39% 10.16% 194.01% S&P: +0.08% 5.94% 21.32% 96.05% NASDAQ: -0.00% 3.34% 12.09% 100.94% Rec'd # Security In At Now Change 5/17/95 980 Iomega Cor 2.52 22.50 792.86% 8/5/94 355 AmOnline 7.27 59.50 718.43% 8/12/96 110 Minn M&M 65.68 102.13 55.50% 10/1/96 42 LucentTech 47.62 73.13 53.57% 8/11/95 125 Chevron 50.28 74.50 48.16% 8/24/95 130 KLA Tencor 44.71 49.88 11.55% 8/12/96 280 Gen'l Moto 51.97 55.63 7.03% 8/13/96 250 3Com Corp. 46.86 49.81 6.30% 8/12/96 130 AT&T 39.58 37.25 -5.88% 4/30/97 -1170 *Trump* 8.47 10.13 -19.56% 10/22/96 600 ATC Comm. 22.94 5.13 -77.66% Rec'd # Security In At Value Change 8/5/94 355 AmOnline 2581.87 21122.50 $18540.63 5/17/95 980 Iomega Cor 2594.53 22050.00 $19455.47 8/12/96 110 Minn M&M 7224.44 11233.75 $4009.31 8/11/95 125 Chevron 6285.61 9312.50 $3026.89 10/1/96 42 LucentTech 1999.88 3071.25 $1071.37 8/12/96 280 Gen'l Moto 14552.49 15575.00 $1022.51 8/13/96 250 3Com Corp. 11714.99 12453.13 $738.14 8/24/95 130 KLA Tencor 5812.49 6483.75 $671.26 8/12/96 130 AT&T 5145.11 4842.50 -$302.61 4/30/97 -1170*Trump* -9908.50 -11846.25 -$1937.75 10/22/96 600 ATC Comm. 13761.50 3075.00-$10686.50 CASH $49631.21 TOTAL $147004.34