HEROES

Direct broadcast satellite company ECHOSTAR COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DISH)") else Response.Write("(Nasdaq: DISH)") end if %> was launched $8 3/4 to $26 3/4 as NEWS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NWS)") else Response.Write("(NYSE: NWS)") end if %> will take a 50% stake in the company in exchange for its contribution of ASkyB satellites, $500 million in cash, and other assets. Barely a month ago, investors fretted that EchoStar wasn't signing up customers quickly enough and that pricing on hardware was hurting the company. Now the game has changed for EchoStar. Deathstar is more like it, since the ground stations and satellite space News Corp. brings to the deal will allow the company to offer local broadcasts along with its other services, pricing the whole package around $25 per month. Plus, EchoStar will have the marketing reach and clout to cut deals for all sorts of pay-per-view events and premium channels. Cable TV giant TELECOMMUNICATIONS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TCOMA)") else Response.Write("(Nasdaq: TCOMA)") end if %> fell $1 to $13 on the news.

THERAGENICS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: THRX)") else Response.Write("(Nasdaq: THRX)") end if %> was propelled $7 3/8 higher to $25 1/2 after signed a licensing deal with JOHNSON & JOHNSON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JNJ)") else Response.Write("(NYSE: JNJ)") end if %>. J&J will have exclusive world marketing rights to the company's Theraseed Palladium 103 prostate cancer treatment, which is a very small pharmaceutical package delivered via a minimally invasive surgery. The terms of the agreement call for Johnson & Johnson to take care of every phase of distribution, from marketing to the training of medical specialists over an initial period of seven years. Judging from the fact that the company makes money even on quarterly revenues under $5 million, additional sales volumes may represent almost pure profit. No wonder Johnson & Johnson also wants to invest $5 million in the company.

Competitive local exchange carrier and erstwhile long-distance company WINSTAR COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WCII)") else Response.Write("(Nasdaq: WCII)") end if %> jumped $2 5/16 to $13 1/4 after yesterday's scare from AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %>, which announced its own plan to bypass the Baby Bells with wireless service. Investors were hoping that there might be a need for AT&T to contract with Winstar for its wireless services, but the business plans are different. Winstar's high bandwidth, 38 gigahertz point-to-point wireless service is aimed at business users who require an industrial-strength pipe into the telecommunications backbone. The Wall Street Journal described the AT&T service as primarily aimed at residential customers who wouldn't have a line-of-sight to a tower. Nevertheless, the possibility of AT&T purchasing service from Winstar isn't totally out of the question.

QUICK TAKES: CENTENNIAL TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CTN)") else Response.Write("(NYSE: CTN)") end if %> rocketed $10 1/4 to $14 3/4, up 228%, as the beleaguered company's officers are doing a masterful job of damage control -- the shares were halted by the NYSE before the close for the dissemination of news... Biotech company CERUS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CERS)") else Response.Write("(Nasdaq: CERS)") end if %> rose $2 3/4 to $11 1/8 after Morgan Stanley initiated coverage with a "strong buy" rating... PAUL-SON GAMING <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PSON)") else Response.Write("(Nasdaq: PSON)") end if %> rose $1 to $11 1/4 after the casino products maker was featured in Investor's Business Daily's "New America" column... GUILFORD PHARMACEUTICALS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GLFD)") else Response.Write("(Nasdaq: GLFD)") end if %> gained $2 1/4 to $27 after the company and marketing partner RHONE POULENC RORER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RPR)") else Response.Write("(NYSE: RPR)") end if %> announced the availability in the U.S. of Guilford's brain cancer treatment... Mexican Coke bottler COCA-COLA FEMSA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KOF)") else Response.Write("(NYSE: KOF)") end if %> spurted $2 5/8 to $35 after reporting a 197% jump in Q4 earnings in peso terms... KIMBERLY CLARK <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KMB)") else Response.Write("(NYSE: KMB)") end if %> gained $4 1/4 to $106 1/4 after Goldman Sachs raised its rating on the consumer paper products company... Retail inventory and security systems company CHECKPOINT SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CKP)") else Response.Write("(NYSE: CKP)") end if %> moved up $1 1/2 to $21 1/2 after announcing an exclusive five-year contract with Kohl's Department Stores... HOMESIDE INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HSL)") else Response.Write("(NYSE: HSL)") end if %> rose $1 1/2 to $18 3/8 after Smith Barney started coverage of the mortgage lender with a "buy" rating... Telecom equipment company SUPERIOR TELECOM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SUT)") else Response.Write("(NYSE: SUT)") end if %> gained $1 1/2 to $25 on reporting Q1 earnings per share (EPS) of $0.47, beating estimates of $0.32... WAL MART <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMT)") else Response.Write("(NYSE: WMT)") end if %> jumped $1 3/4 to $26 3/8 after yesterday's report of a 17% increase in Q4 EPS... HOME DEPOT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HD)") else Response.Write("(NYSE: HD)") end if %> gained $2 7/8 to $55 1/8 on reporting Q4 EPS of $0.52, beating estimates of $0.49, on a 32% increase in quarterly sales... Refiner and chemical company FINA INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: FI)") else Response.Write("(AMEX: FI)") end if %> jumped $12 3/8 to $62 1/2 after Belgian parent PETROFINA <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PTRFY)") else Response.Write("(Nasdaq: PTRFY)") end if %> bid $60 per share for the 14% of the company it doesn't own... GRAHAM CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: GHM)") else Response.Write("(AMEX: GHM)") end if %> gained $2 3/8 to $13 3/8 after the turbine engine parts company reported a 37% increase in Q4 earnings from continuing operations... One of the largest non-RBOC local phone companies, TELEPHONE & DATA SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: TDS)") else Response.Write("(AMEX: TDS)") end if %>, gained $4 1/4 to $42 after investor Michael Price's Franklin Group took a 9.8% stake in the company intending to change the way things are done at the firm.

GOATS

Contract research organization CLINITRIALS RESEARCH <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CCRO)") else Response.Write("(Nasdaq: CCRO)") end if %> plunged $13 3/4 to $9 1/2 after Wessels Arnold lowered its rating on the company this morning, which was followed by an announcement from the company saying that it had been hit with a customer cancellation. The company had warned investors (or at least analysts) "earlier" that it had lost two orders for the fourth quarter, but this new cancellation will run the sequential revenue comparison into negative figures. Year-over-year, revenue growth is expected to be above 60%, but the sequential comparison to last quarter could be down as much as 13%. Combined with the departure of the company's Chief Financial Officer and other key executives over the last few months, investors aren't really sure what to think at the moment. The company did say, though, that Q1 earnings will come in below expectations of $0.14 per share.

UNITED AUTO GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UAG)") else Response.Write("(NYSE: UAG)") end if %> was wrecked for a $6 5/8 loss to $24 3/4 after announcing that due to planned increases in operating expense levels it will miss Q1 1997 EPS estimates, which stand at $0.22 according to First Call. The company also said that it would meet expectations of $1.50 to $1.55 for the full year, though. That was enough for investors in the second-largest publicly traded auto dealership to send the price downward. Consumer credit capacity might be taking some of the blame right now, but the other factor weighing on the minds of the used car industry is strength in new car sales. With the yen trading where it is, affording price flexibility for Japanese car makers, and American car companies not having to push the channel with incentives, investors don't think the company is leaving itself much room to meet those estimates.

APPLIED MAGNETICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: APM)") else Response.Write("(NYSE: APM)") end if %> lost $4 7/8 to $48 1/8 as risk arbitrageurs move to short it and buy READ-RITE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RDRT)") else Response.Write("(Nasdaq: RDRT)") end if %>, a competitor for which Applied launched a hostile takeover bid yesterday. In documents filed yesterday, Applied said it has been trying to convince Read-Rite of the merits of a merger since early 1996. The filing detailed the progression of merger talks in which Read-Rite Chairman Cyril Yansouni told Applied Magnetics that he didn't think the time was right for a merger, given his company's depressed share price. At 0.679 shares of Applied Magnetics for each Read-Rite share, the deal price has already fallen to about $33 per share from the $37.50 originally stated. While one could argue that Applied has more effectively built shareholder value, the trading today, as well as the company's negative retained earnings compared to Read-Rite's surplus, could be pointing to the temporal nature of the formerly high stock price.

QUICK CUTS: Electronic components maker METHODE ELECTRONICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: METHA)") else Response.Write("(Nasdaq: METHA)") end if %> slumped $5 1/16 to $15 13/16 after reporting an 18% increase in Q3 EPS, but warning that it doesn't think it will match that sort of growth for the fourth quarter... HEALTH MANAGEMENT SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HMSY)") else Response.Write("(Nasdaq: HMSY)") end if %> lost $1 3/8 to $8 1/4 after the healthcare information systems company turned in Q1 EPS of $0.13, below estimates of $0.17... Internet service provider NETCOM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NETC)") else Response.Write("(Nasdaq: NETC)") end if %> slid $1 11/16 to $9 3/4 after CS First Boston cut its rating on the company to "hold" from "buy"... CENTIGRAM COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CGRM)") else Response.Write("(Nasdaq: CGRM)") end if %> fell $1 21/32 to $12 3/32 after the voice messaging and communications systems company reported Q1 EPS of $0.10, missing estimates of $0.18... After announcing that revenue and earnings visibility has been diminished by shorter lead times, CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> fell $2 1/2 to $56 1/2... VIVID TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VVID)") else Response.Write("(Nasdaq: VVID)") end if %> lost $2 3/4 to $21 3/4 after Lehman Brothers downgraded the shares of the bomb detection systems company to "outperform" from "strong buy"... Energy exploration company BELCO OIL & GAS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BOG)") else Response.Write("(NYSE: BOG)") end if %> slipped $4 1/8 to $18 7/8 after Smith Barney cut its rating on the company to "neutral" from "accumulate"... MOLECULAR BIOSYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MB)") else Response.Write("(NYSE: MB)") end if %> lost $1 7/8 to $12 1/2 despite announcing this morning that the FDA voted to approve the company's second generation ultrasound equipment... Footwear and accessories maker KENNETH COLE PRODUCTIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KCP)") else Response.Write("(NYSE: KCP)") end if %> lost $1 1/4 to $21 1/2 on reporting Q4 EPS of $0.19, beating estimates by a penny... ICG COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: ICG)") else Response.Write("(AMEX: ICG)") end if %> fell $1 3/4 to $12 7/8 after the competitive local exchange carrier announced last night that it is seeking to offer $200 million in securities.

FOOL ON THE HILL
An Investment Opinion by MF Templar

Revenues: Other

TEL-SAVE HOLDINGS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TALK)") else Response.Write("(Nasdaq: TALK)") end if %> unlocked the marketing power of AMERICA ONLINE'S <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %> subscriber base today, pushing shares of the New Hope, Pennsylvania-based long-distance service provider up $7 3/8 to $20 1/2. Tel-Save signed an exclusive three-year contract to pitch its telephone long-distance service to America Online members, renewable in one-year increments. Tel-Save has already given America Online a $100 million initial payment.

Tel-Save currently markets long-distance services to 300,000 small- and medium-sized businesses throughout the United States. This move by the company signals its intentions to get into the consumer discount long-distance space in an unprecedented manner -- directly marketing to the subscribers of an online service. The extensive pact calls for Tel-Save to give America Online a portion of its profits from any subscribers that it converts into paying long-distance customers, positioning the $100 million payment as an advance. Although the specific percentage of profits was not disclosed, institutional sources put this number at around 50%.

America Online also received an additional incentive to try to get as many of its subscribers as possible over to Tel-Save's long-distance plan -- warrants for 12 million shares of Tel-Save common stock with strike prices between $14 and $15 1/2 per share. Should more than 3.5 million America Online subscribers use Tel-Save at any one time, the warrants convert into common stock. At today's price for Tel-Save, this would mean an additional $30 to $50 million depending on the average strike price of the warrants.

Tel-Save plans to attack the consumer long-distance market by providing the first truly online billing system in the long-distance business. Tel-Save wants consumers to enroll online, check their bill in a special area within America Online, and pay their fees with a credit card -- completely removing the cost and expense of the traditional billing infrastructure. Tel-Save plans to test its service area with a sampling of customers in the second quarter, and will roll out the service for the entire America Online community in the fall. Tel-Save will also offer local and wireless services where applicable.

This deal is probably the largest commitment that has been made to America Online in terms of an up-front payment for marketing and advertising. The $100 million payment is almost three times the amount America Online earned last quarter from advertising on the entire service. The payment itself is rather large when one considers that as of the last reported quarter, Tel-Save had $130.2 million in cash and equivalents on its balance sheet. Given that this is an advance against future royalties based on sales of the service to consumers, the accounting will probably be structured in such a way that the revenue is recognized as it accrues rather than in one lump sum. America Online gets the immediate benefit of the cash, perhaps even using it to finance part of the much-publicized $350 million system upgrade to improve access that the company embarked upon when it announced its flat-fee pricing plan in December.

Despite the many pundits who have concluded that for one reason or another America Online was dead, the service has continued to maintain its multi-million subscriber base -- a very attractive object for marketers like Tel-Save. BARNES & NOBLES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BKS)") else Response.Write("(NYSE: BKS)") end if %> recently announced that it would sell books on America Online in an attempt to stave off Web-based competition from Amazon.com, although the specific terms of that agreement were not announced at the time. Certainly these deals are the first of many attempts to somehow leverage America Online's eight million-plus personal computer-owning users in some mutually beneficial manner. This is the principle reason that America Online stock is up $1 1/8 to $36 5/8 today despite the announcement of an apparently frivolous shareholder lawsuit alleging "insider trading" due to the company's change of accounting policies earlier this year.

CONFERENCE CALLS

DELL COMPUTER <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DELL)") else Response.Write("(Nasdaq: DELL)") end if %>
replay avail. at 7:30 PM EST for 24 hrs.
(800) 633-8284 (reservation # 2454194)

WAL-MART <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMT)") else Response.Write("(NYSE: WMT)") end if %>
replay avail. until 1:00 PM EST
(800) 633-8284 (reservation # 2339970)

LIMITED INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LTD)") else Response.Write("(NYSE: LTD)") end if %>
(800) 805-3502

HEWLETT-PACKARD <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HWP)") else Response.Write("(NYSE: HWP)") end if %>
(303) 446-5399 (reservation # 2348408) -- replay avail thru 2/25

GENZYME CORP-TISSUE REPAIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZL)") else Response.Write("(Nasdaq: GENZL)") end if %>
(402) 220-6030 -- replay through 5PM on 2/25

MORROW SNOWBOARDS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MRRW)") else Response.Write("(Nasdaq: MRRW)") end if %>
(201) 628-6885 replay until 2/28

ELTEK LTD. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ELTKF)") else Response.Write("(Nasdaq: ELTKF)") end if %>
(913) 661-0487 code: 314285

HOME DEPOT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HD)") else Response.Write("(NYSE: HD)") end if %>
(402) 220-3005 -- replay after 12:00 noon until 2/28

ORTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORTL)") else Response.Write("(Nasdaq: ORTL)") end if %>
(402) 220-5186 -- replay through 3/7

ANOTHER FOOLISH THING
Good Fool, Bad Villains and You!

Have you checked out our exciting new game, Bust the Tipsters? It is hailed by many at Fool HQ as, "The most amazing interactive and educational game featuring a Foolish hero and evil stock manipulators and misinformers ever!" Check in and try to solve a new case every day, aided by Motley Fool as he tries to foil the villainous Dr. Mortimer Stocktout, Mo-Mental, the Churner, the Smile and Dial sisters, Cold-Call Pete, Pork Belly, the Whisper and the Talking Head. This fun new game pays off with education, amusement, and prizes from FoolMart. You'll find Bust the Tipsters in the Fool's School and in our Games area, with new cases six times a week. Enjoy!

MORE FOOLISHNESS
The Weekly Fool

Are you a Fool with a life? Do you find that although you *want* to explore every nook and cranny of Fooldom each day, that you just don't have the time for it? If so, then you might want to subscribe to The Weekly Fool. The Weekly Fool is a handy compilation of the week's most interesting, amusing, and important posts and articles in Fooldom. If you're a Fool on the run yet want to stay in the loop, sign up! Download a sample copy at The Electronic Fool (on AOL, keyword: ELF) and order a subscription from FoolMart on either AOL or this site. We even offer a snail-mailed paper version, for those without e-mail. For information and pricing on the snail-mail version, contact [email protected]. This is a perfect gift, too -- turn your friends into Fools!

Randy Befumo (MF Templar), a Fool
Fool On the Hill

Dale Wettlaufer (MF Raleigh), another Fool
Heroes & Goats

Brian Bauer (MF Hoops), one more Fool
Editing

THE DAILY NEWS CAN BE DELIVERED DIRECTLY TO ANY INTERNET E-MAIL BOX.