Fool Portfolio Report
Tuesday, July 8, 1997
Jeff Fischer (TMFJeff)


ALEXANDRIA, VA, (July 8, 1998) -- In the five days of trading to begin July, the Fool Portfolio is up 6.10%, the S&P 3.80%, and the Nasdaq Composite 2.98%.

Silence the phones, shut down the ticker machines, close the windows and lock the doors -- let's all go on vacation until August and declare July a smashing success for the stock market! If the S&P continued to gain 3.8% per month for the next 36 months, it would gain an unbelievable...

Blah, blah, blah.... It won't continue at this pace.

The Fool Portfolio has yet to experience a negative day this month. Today the Fool's twelve American investments rose 0.87% in value, while the S&P gained 0.72%. All the indexes made record highs, again. The new highs aren't taken for granted and we don't expect them to continue consistently, but new highs... yawn. What else is new?

The following isn't new either, but it is good:

The marketing power of AMERICA ONLINE (NYSE: AOL) continues to gain the respect of investors and vendors. Today the Big Blue Triangle announced a four-year "partnership" with 1-800-FLOWERS, after last night announcing a large deal with book-seller AMAZON.COM (Nasdaq: AMZN).

Under the Flower deal (author's note: if you've recently upset your wife, husband, parents, sibling, or dog, flowers are available on AOL at Keyword: Flowers, or on the Web at... hey, wait a minute! They'd much rather receive a Foolish gift. Great gifts are available at FoolMart! Bastille Day is next Monday! And the Pamplona Festival is all this week! It's gift giving time!)

All right. Let's keep moving.

Under the Flower deal, America Online will receive payments totaling $25 million, plus a limited share of revenues, which could be substantial if sales at 1-800-FLOWERS tops $250 million over the next four years, as the company expects.

Also, America Online announced a three-year promotional deal with Amazon.com. The online book leader will receive prime placement on AOL's Web Homepage. In return AOL will receive $19 million over the next three years, with the possibility of more payments if sales exceed agreed upon levels.

Several institutions have been well rewarded by owning AOL's stock. About 50 million shares -- or half the float -- are owned by institutions -- as shown by recent AOL investor information. Tonight the Fool's Evening News estimates a fair value for AOL looking forward twelve to eighteen months.

A little side-note about 1-800-FLOWERS and Amazon.com. Nice marketing, eh? They could have called themselves "Flowers By Phone" and "Amazon Books." Instead they named their companies after the means by which to reach them. Seems simple and obvious, but then why don't more companies do so?

We dialed up TRUMP HOTELS (NYSE: DJT) today because earnings were due sometime this week, but we weren't sure which day. The company stated that the earnings announcement has been moved to the end of July, but the folks on the phone couldn't say why. They weren't told the reason.

It isn't the end of the company's fiscal year, and the company is in its strong season, so it's not easy to guess why earnings have been delayed. Perhaps the accountants need more time.

The Boring Portfolio has been known to sell a stock because Greg Markus (TMF Boring) wasn't comfortable with management's disclosure of the business -- because information was difficult to gather from the company, and that obviously isn't how a public company should be run. Part of the reason that we like INNOVEX (Nasdaq: INVX) is the management's superb open nature with shareholders. Trump isn't so open.

Trump is expected to earn $0.08 per share, announced during the final week of July, now. Innovex announces earnings next Monday, the Fourteenth, and $0.70 per share is expected. IOMEGA (NYSE: IOM) is slated to announce on July 17th, and $0.19 per share is expected.

General Motors, Lucent, and AT&T announce earnings next week, too.

Final note: the quote providers have Trump's trailing earnings listed incorrectly, including the stock quotes on AOL. The company has trailing losses of $3.12 per share, listed by quarter as: (0.59), (1.28), 0.81, and (2.06). Quote providers list $0.13 in trailing earnings, and a resulting P/E of 76. The true P/E is N/A.

Fool on!

Fool Message Boards -- What are Fools saying?
Boring Portfolio -- All but one stock in positive ground.
Fool Four -- 23% annually, historically.
Evening News -- Big movers, up and down.
Port Tracker -- Update your portfolio daily, easily.
Daily Double -- Is it set to tumble? Or keep going?
Daily Trouble -- Value in this butchered stock?
Fribble -- A fun, quick story from readers.


TODAY'S NUMBERS
Stock Change Bid ---------------- AOL +2 1/4 65.56 T - 3/16 36.44 ATCT --- 4.81 CHV + 1/4 75.75 DJT - 1/8 9.88 GM + 3/16 56.69 INVX --- 28.75 IOM - 3/16 20.94 KLAC + 1/2 54.69 LU +1 5/8 75.88 MMM +1 3/4 103.06 COMS + 9/16 50.00
Day Month Year History FOOL +0.87% 6.10% 11.89% 198.62% S&P: +0.72% 3.80% 24.03% 100.43% NASDAQ: +0.98% 2.98% 15.03% 106.21% Rec'd # Security In At Now Change 8/5/94 355 AmOnline 7.27 65.56 801.82% 5/17/95 980 Iomega Cor 2.52 20.94 730.85% 10/1/96 42 LucentTech 47.62 75.88 59.35% 8/12/96 110 Minn M&M 65.68 103.06 56.92% 8/11/95 125 Chevron 50.28 75.75 50.64% 8/24/95 130 KLA Tencor 44.71 54.69 22.31% 8/12/96 280 Gen'l Moto 51.97 56.69 9.07% 8/13/96 250 3Com Corp. 46.86 50.00 6.70% 6/26/97 325 Innovex 27.71 28.75 3.75% 8/12/96 130 AT&T 39.58 36.44 -7.93% 4/30/97 -1170 *Trump* 8.47 9.88 -16.60% 10/22/96 600 ATC Comm. 22.94 4.81 -79.02% Rec'd # Security In At Value Change 8/5/94 355 AmOnline 2581.87 23274.69 $20692.82 5/17/95 980 Iomega Cor 2594.53 20518.75 $17924.22 8/12/96 110 Minn M&M 7224.44 11336.88 $4112.44 8/11/95 125 Chevron 6285.61 9468.75 $3183.14 8/12/96 280 Gen'l Moto 14552.49 15872.50 $1320.01 8/24/95 130 KLA Tencor 5812.49 7109.38 $1296.89 10/1/96 42 LucentTech 1999.88 3186.75 $1186.87 8/13/96 250 3Com Corp. 11714.99 12500.00 $785.01 6/26/97 325 Innovex 9005.62 9343.75 $338.13 8/12/96 130 AT&T 5145.11 4736.88 -$408.24 4/30/97 -1170*Trump* -9908.50 -11553.75 -$1645.25 10/22/96 600 ATC Comm. 13761.50 2887.50-$10874.00 CASH $40625.59 TOTAL $149307.65