Fool Portfolio Report
Wednesday, February 4, 1998
by David Gardner (DavidG@fool.com)

A CNN SPECIAL REPORT
Day 6: Market Under Siege

Dramatic music plays: a military march, heavy on the drums.

ANCHOR BERNARD SHAW: Welcome. This is a CNN Special Report... Bernard Shaw reporting. It's Day 6: Market Under Siege. Joining me today are David Gardner and Jeff Fischer, portfolio managers of The Motley Fool Portfolio. Gentlemen.

DAVID GARDNER and JEFF FISCHER: Bernie.

SHAW: Let's get right to the story. The Fool Portfolio has now beaten the stock market's return for six consecutive outings.

FISCHER: That's right.

SHAW: And so we have breaking news, here... a developing situation: market under siege.

GARDNER: Here's hoping your whole "siege theme" and the countdown continue for a long time, Bernie.

SHAW: Indeed. OK, for a special report, let's go live to the market floor right now, where our correspondent Wolf Blitzer is standing by. Wolf.

CORRESPONDENT WOLF BLITZER: Bernie.

SHAW: You are looking as self-important as ever.

BLITZER: You are too, Bernie. That's what this business is all about.

SHAW: And we have a developing situation.

BLITZER: Yes, we do indeed. Well, it may appear to be business as usual today here on Wall Street. Market specialists setting orders, runners taking calls to the floor, huge amounts of money being made and lost all around me. But there's an unacknowledged seamy underbelly to all these hustlings and bustlings, a silent urgency that must surely be a part of every floor trader's step: The Motley Fool portfolio is outperforming the market. For six consecutive sessions now. It has truly left us with a "Market Under Siege."

SHAW: Fools, what do you think?

FISCHER: I think Wolf has some good points there, but I think the story overall is pretty overblown.

SHAW: David?

GARDNER: I concur. I mean, it's not like we're beating the thing for the year. In fact, right now we're losing to the S&P for 1998. Down about 5 percentage points.

SHAW: But we're dealing here with a siege.

GARDNER: It's true.

BLITZER: I need to point out that many people on Wall Street are still oblivious to this... almost completely unaware of what is going on out here around them. The traditional "siege mentality" of having your castle surrounded, your supply lines cut off, your morale petering away, it's missing altogether. It's just missing.

SHAW: Let's take a commercial. We'll be back after this.

Military march theme takes you away: bum-bum bum bum. Commercials play.

SHAW: And now we're back with Day Six: Market Under Siege. How much longer do you gentlemen see this lasting?

GARDNER: We don't really make short-term market predictions.

FISCHER: You'd have to think that it may continue for a while, unless it doesn't.

GARDNER: To be honest, Bernard, we're surprised CNN considered this newsworthy at all. Again, the whole "market siege" theme is really overplayed. In fact, I think the word "siege" is a tired old saw today. I'd like to see the media come up with something else.

FISCHER: I'd argue that not only is this not newsworthy, but it's not even that good of an idea for a Fool Portfolio recap. I mean, it's kind of lame.

GARDNER: Shut up, Jeff.

SHAW (breaking in): AND so we thank our guests for their time today, and we thank YOU at home, because without you, we wouldn't be able to sell a lick of advertising for this high-production programming. This is Bernard Shaw...

BLITZER: And Wolf Blitzer from the floor of the New York Stock Exchange!

SHAW: ... reporting.

Bum-bum, bum-bum-bum-bum.

--David Gardner (DavidG@fool.com), February 4, 1998

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TODAY'S NUMBERS

Stock Change Bid ---------------- AMZN - 5/8 60.75 AOL +1 100.75 T + 13/16 64.00 CHV + 1/16 76.00 DJT + 1/4 9.25 GM + 15/16 61.88 INVX - 1/4 23.75 IOM + 1/4 10.13 KLAC +3 43.00 LU +2 3/16 94.50 MMM - 9/16 87.81 RTN.A + 5/16 53.69 COMS + 3/4 34.75 TDFX - 5/8 25.25 SPY - 1/8 100.56
Day Month Year History FOOL +0.91% 6.06% -0.09% 235.29% S&P: +0.09% 2.72% 3.76% 119.66% NASDAQ: +0.84% 3.77% 7.01% 133.34% Rec'd # Security In At Now Change 8/5/94 355 AmOnline 7.27 100.75 1285.28% 5/17/95 1960 Iomega Cor 1.28 10.13 690.76% 10/1/96 42 LucentTech 47.62 94.50 98.46% 8/12/96 130 AT&T 39.58 64.00 61.71% 9/9/97 290 Amazon.com 38.22 60.75 58.94% 8/11/95 125 Chevron 50.28 76.00 51.14% 8/12/96 110 Minn M&M 65.68 87.81 33.70% 8/12/96 280 Gen'l Moto 48.74 61.88 26.94% 1/8/98 115 S&P Depos. 95.91 100.56 4.85% 12/19/97 17 Raytheon 53.21 53.69 0.90% 1/8/98 425 3Dfx 25.67 25.25 -1.63% 8/24/95 130 KLA-Tencor 44.71 43.00 -3.83% 4/30/97 -1170 *Trump* 8.47 9.25 -9.22% 6/26/97 325 Innovex 27.71 23.75 -14.29% 8/13/96 250 3Com Corp. 46.86 34.75 -25.85% Rec'd # Security In At Value Change 8/5/94 355 AmOnline 2581.87 35766.25 $33184.38 5/17/95 1960 Iomega Cor 2509.60 19845.00 $17335.40 9/9/97 290 Amazon.com 11084.24 17617.50 $6533.26 8/12/96 280 Gen'l Moto 13647.92 17325.00 $3677.08 8/11/95 125 Chevron 6285.61 9500.00 $3214.39 8/12/96 130 AT&T 5145.11 8320.00 $3174.89 8/12/96 110 Minn M&M 7224.44 9659.38 $2434.94 10/1/96 42 LucentTech 1999.88 3969.00 $1969.12 1/8/98 115 S&P Depos. 11029.25 11564.69 $535.44 12/19/97 17 Raytheon 904.57 912.69 $8.12 1/8/98 425 3Dfx 10908.63 10731.25 -$177.38 8/24/95 130 KLA-Tencor 5812.49 5590.00 -$222.49 4/30/97 -1170*Trump* -9908.50 -10822.50 -$914.00 6/26/97 325 Innovex 9005.62 7718.75 -$1286.87 8/13/96 250 3Com Corp. 11715.99 8687.50 -$3028.49 CASH $11259.61 TOTAL $167644.11