Balmy Monday
Plus, Old Lou, AOL and you, too...
by Jeff Fischer
([email protected])
ALEXANDRIA, VA (July 20, 1998) -- Large gains in the Fool Port on this balmy Monday must indicate a barrage of tremendous news and gala festivities at our companies. Au contraire. There is little to report except from the rugged terrain of Murray Hill, New Jersey -- headquarters of Lucent Technologies -- and from sunny and oily Saudi Arabia (again only in relation to Lucent).
Our telecom leader reported a $699 million mobile telephone contract in Saudi Arabia. Just as important though paling in comparison by size, Lucent also agreed to acquire Australian telecom equipment provider JNA Telecommunications for $70 million in cash. (Supposedly Lucent won a bidding war with Cisco Systems.) This news was enough to send Old Lou up $6 7/8, to a new all-time high. Lucent Technologies (NYSE: LU) has appreciated 328% for the Fool Port since late 1996. The stock now trades at 53 times earnings estimates for fiscal year 1999, which ends next September.
Elton John's "Rocket Man" melody just came to mind. For as strong as Lucent was, a majority of the portfolio's boosters were lit by Amazon.com and America Online (NYSE: AOL), both of which ascended on a lack of news (that is, if you consider a new worldwide medium not newsworthy -- and that tens of thousands of people signed on for the first time today, as happens every day).
America Online did announce the further development of its Digital Cities content -- not a surprise. The stock is simply, apparently, moving towards a more realistic valuation based on the likely growth of its subscriber base and commerce and ad revenue. Some estimates put the stock's fair value at around $150 next year and $180 in 2000, as discussed here two weeks ago. Today one analyst raised his 1999 price target to $165 per share.
Meanwhile, Amazon's $17 rise took place without a drop of meaningful news, but there will be a inundation of news this week from that company and other Fool stocks.
As shared in the Fool's conference call area, over the next four days we'll see earnings from Innovex (after the market tonight), Amazon and Lucent Technologies (Wednesday), and Starbucks (Thursday). For the first time in its history, Starbucks will make its conference call available to the investing public. I'll offer coverage of the Starbucks call and others. Amazon.com isn't offering a conference call replay to individual investors yet, which in essence goes against SEC laws.
Moving headlong into a Foolish week -- tomorrow we'll cover Innovex's earnings and discuss Iomega (NYSE: IOM) in relation to our quarterly review of each Fool stock. For tonight, Iomega (and Amazon) are a part of the Fool's midyear review collection -- a collection that holds many of the most interesting stories of the first half of this memorable year. You can also win a $3,000 Web Street brokerage account by answering ten Foolish questions in relation to the midyear feature.
If you'd like to discuss topics regarding specific Fool Port stocks this week, post your thoughts on each particular stocks' message board on the Fool's website and, if you want me in particular to respond, email me as to your post.
Finally, if you're in an investment club or thinking of beginning one, check out the "It's so cheap it's almost free" Fool Investment Club primer. Also know that your club can begin its own investment club message folder on the Fool's website to communicate with one another seven days a week.
WE
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Today's FoolWatch: all the latest in Fooldom.
Day Month Year History Annualized FOOL +5.89% 18.59% 69.23% 467.93% 55.12% S&P: -0.22% 4.43% 22.02% 158.31% 27.11% NASDAQ: +0.27% 6.31% 28.27% 179.69% 29.69% Rec'd # Security In At Now Change 8/5/94 710 AmOnline 3.64 136.38 3650.24% 9/9/97 580 Amazon.com 19.11 137.44 619.16% 5/17/95 1960 Iomega Cor 1.28 6.00 368.60% 10/1/96 84 LucentTech 23.81 102.00 328.43% 8/12/96 130 AT&T 39.58 59.38 50.02% 2/20/98 215 DuPont 59.83 67.00 11.98% 2/20/98 200 Exxon 64.09 70.56 10.10% 4/30/97 -1170*Trump* 8.47 7.69 9.23% 7/2/98 235 Starbucks 55.91 56.00 0.16% 2/20/98 270 Int'l Pape 47.69 45.38 -4.86% 1/8/98 425 3Dfx 25.67 16.19 -36.93% 8/24/95 130 KLA-Tencor 44.71 27.50 -38.49% 8/13/96 250 3Com Corp. 46.86 28.63 -38.92% 6/26/97 325 Innovex 27.71 15.25 -44.96% Rec'd # Security In At Value Change 8/5/94 710 AmOnline 2581.87 96826.25 $94244.38 9/9/97 580 Amazon.com 11084.24 79713.75 $68629.51 5/17/95 1960 Iomega Cor 2509.60 11760.00 $9250.40 10/1/96 84 LucentTech 1999.88 8568.00 $6568.12 8/12/96 130 AT&T 5145.11 7718.75 $2573.64 2/20/98 215 DuPont 12864.25 14405.00 $1540.75 2/20/98 200 Exxon 12818.00 14112.50 $1294.50 4/30/97 -1170*Trump* -9908.50 -8994.38 $914.13 7/2/98 235 Starbucks 13138.63 13160.00 $21.38 2/20/98 270 Int'l Pape 12876.75 12251.25 -$625.50 8/24/95 130 KLA-Tencor 5812.49 3575.00 -$2237.49 1/8/98 425 3Dfx 10908.63 6879.69 -$4028.94 6/26/97 325 Innovex 9005.62 4956.25 -$4049.37 8/13/96 250 3Com Corp. 11715.99 7156.25 -$4559.74 CASH $11876.47 TOTAL $283964.78
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