Fool Portfolio Report
Thursday, June 26, 1997
David Forrest (DavidF@fool.com)
ALEXANDRIA, VA., (June 26, 1997) - Hey gang! TMF Bogey here, sitting
in for Tom Gardner who is A.W.O.L. from Fool HQ today. We're not exactly
sure where Tom is, but we have reports that he was seen around 5am fueling
up his VW Microbus with a sign in the window that said "Minnesota or BUST!"
Perhaps Tom is on his way out to Hopkins, Minnesota to check out the operations
of the Fool Portfolio's newest entry, Innovex, Inc. (Nasdaq: INVX).
Sometime in mid-morning, we received confirmation that shares of Innovex had been purchased at $27 5/8. In last night's Fool Flash, we laid out our intentions to pick up approximately $9000 worth of Innovex. This represents about 7-8% of the total value of the Fool portfolio and is consistent with what we consider to be proper risk management. Even if Innovex were to go bankrupt tomorrow, the portfolio would be fine because the size of the position isn't significant enough, on its own, to hurt us badly. We suggest that everyone try to keep his or her portfolio diversified so that no single "debacle" will hurt you either. More on Innovex in the coming days.
Speaking of debacles, our experience with ATC Communications (Nasdaq: ATCT), down $1/4 at $5.00, is a perfect example of how keeping a diversified lot helps to insulate you from disaster. The stock has dropped like a lead balloon and the portfolio, on the whole, is still doing very nicely, bettering the market averages by almost 100%.
And, while we're still on the subject of debacles, let's look at Trump (NYSE: DJT), unchanged at $10 1/8. For those reading the Fool Portfolio write-up for the first time, we are short 1,170 shares of Trump Hotels & Casino Resorts. Trump had a bit of news today that on the surface doesn't seem like that big a deal, but has some significance, at least to this Fool.
Effective tomorrow, "Trump Castle" will be renamed "Trump Marina Hotel Casino." Now, I'm no genius, but I know that when you have a strong name brand built up, you don't mess with it unless something is wrong and you are grasping for ways to improve the public's perception of your product. It actually speaks volumes about the business to know that "The Donald" had to change the name to try and attract attention.
This tells me that Donald just isn't running things very well. After all, if the core business was sound, he certainly wouldn't be trying gimmicky things like renaming the place to try and attract attention. It almost reminds me of the ice cream shops that open up in your neighborhood, and then close down six months later, only to open up under a different name, hoping against hope that people will all of a sudden rush to the store because it has a new name. Maybe they just don't like ice cream? Donald, maybe your business isn't that good?
As I write tonight's recap, Fool HQ is being assaulted with the most hellacious thunder and lightning storm that this Fool has seen in a looooooong time. With thunder clapping and lightening electrifying the sky, I'm reminded of my Uncle Louis who used to tell me that a thunderstorm was nothing more than God bowling a few frames in Heaven.
Although safe from the hazards of electrocution and noise pollution, the Fool portfolio was under its own assault today, falling to the rest of the market averages by more than double. Down 1.5% for the day, the Fool was hurt by most every stock. AOL, Lucent, and 3Com all dropped more than $1, while Dow heavies Chevron and Minnesota Mining and Manufacturing were both in the plus column.
Apart from the Innovex purchase, there wasn't much news to chew on today. Alas, we are entering summertime and the markets tend to experience a summer slowdown as Fools frolic on our nation's baseball diamonds, throw Frisbees in the park, and enjoy themselves with friends and family. As it should be. So, I close my guest Fool report write-up with a wish for long, lazy days, and fun, Foolish nights this summer.
Oh yeah, and if ya see a short, bald guy driving a '74 VW Microbus towards Minnesota, tell him to "phone home."
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Stock Change Bid ---------------- AOL -1 3/8 56.13 T - 7/8 36.13 ATCT - 1/4 5.00 CHV + 1/16 73.88 DJT --- 10.13 GM - 5/8 55.38 INVX - 1/4 27.13 IOM - 11/16 20.31 KLAC - 3/16 50.13 LU -1 3/16 71.44 MMM + 3/4 102.00 COMS -1 9/16 46.75Day Month Year History FOOL -1.50% 3.95% 6.63% 184.57% S&P: -0.60% 4.17% 19.30% 92.77% NASDAQ: -0.68% 2.58% 11.26% 99.45% Rec'd # Security In At Now Change 5/17/95 980 Iomega Cor 2.52 20.31 706.05% 8/5/94 355 AmOnline 7.27 56.13 672.01% 8/12/96 110 Minn M&M 65.68 102.00 55.31% 10/1/96 42 LucentTech 47.62 71.44 50.03% 8/11/95 125 Chevron 50.28 73.88 46.91% 8/24/95 130 KLA Tencor 44.71 50.13 12.11% 8/12/96 280 Gen'l Moto 51.97 55.38 6.55% 8/13/96 250 3Com Corp. 46.86 46.75 -0.23% 6/26/97 325 Innovex 27.71 27.13 -2.11% 8/12/96 130 AT&T 39.58 36.13 -8.72% 4/30/97 -1170 *Trump* 8.47 10.13 -19.56% 10/22/96 600 ATC Comm. 22.94 5.00 -78.20% Rec'd # Security In At Value Change 8/5/94 355 AmOnline 2581.87 19924.38 $17342.51 5/17/95 980 Iomega Cor 2594.53 19906.25 $17311.72 8/12/96 110 Minn M&M 7224.44 11220.00 $3995.56 8/11/95 125 Chevron 6285.61 9234.38 $2948.77 10/1/96 42 LucentTech 1999.88 3000.38 $1000.50 8/12/96 280 Gen'l Moto 14552.49 15505.00 $952.51 8/24/95 130 KLA Tencor 5812.49 6516.25 $703.76 8/13/96 250 3Com Corp. 11714.99 11687.50 -$27.49 6/26/97 325 Innovex 9005.62 8815.63 -$190.00 8/12/96 130 AT&T 5145.11 4696.25 -$448.86 4/30/97 -1170*Trump* -9908.50 -11846.25 -$1937.75 10/22/96 600 ATC Comm. 13761.50 3000.00-$10761.50 CASH $40625.59 TOTAL $142285.34