HEROES

Gas turbine engine maintenance and overhaul company GREENWICH AIR SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GASIA, GASIB)") else Response.Write("(Nasdaq: GASIA, GASIB)") end if %> was propelled $3 1/2 higher to $29 after agreeing to be acquired by GENERAL ELECTRIC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GE)") else Response.Write("(NYSE: GE)") end if %> for $31 per share in cash and stock. GE also agreed to acquire UNC INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UNC)") else Response.Write("(NYSE: UNC)") end if %>, a provider of corporate aviation services, interior retrofit, and airframe serviced, with which Greenwich agreed to merge in early February. Greenwich also services marine and industrial turbine engines, including those used for power generation. The merger offers GE the opportunity to grow its engine services business by 75% and add markets where it's not already the leader. As the world's largest maker of jet engines for military and commercial aircraft, GE will also improve the profitability of the acquired businesses through expanded gross margins.

Fiber optics, electronics components, and consumer products company CORNING INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GLW)") else Response.Write("(NYSE: GLW)") end if %> gained $4 5/8 to $43 3/4 after the company announced it will beat Q1 earnings estimates of $0.32 for its first quarter. In fact, the company said quarterly earnings (from continuing operations) will increase 40% year-over-year, to $0.37-$0.38 per share. Having spun off its QUEST DIAGNOSTICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DGX)") else Response.Write("(NYSE: DGX)") end if %> and COVANCE INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CVD)") else Response.Write("(NYSE: CVD)") end if %> divisions, the company now offers investors a direct investment in its world-leading fiber-optic cable business, optoelectronics, and flat panel display businesses.

USAIRWAYS GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: U)") else Response.Write("(NYSE: U)") end if %> gained $2 1/2 to $24 7/8 as Merrill Lynch gave its "near-term accumulate" seal of approval to the high-cost air carrier. The airline has been on a torrid run over the last three years, as neither the write-down on the part of Warren Buffett nor the soured relations between it and its sponsor, BRITISH AIRWAYS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAB)") else Response.Write("(NYSE: BAB)") end if %>, have kept investors away. Merrill's analyst was particularly upbeat about the prospects for an "express division," and the possibility of employees taking pay cuts in exchange for a profit-sharing agreement. Perhaps the analyst believes that the common enemy found in the British Airways -- AMERICAN AIRLINES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMR)") else Response.Write("(NYSE: AMR)") end if %> combination has fostered a great team spirit at the airline. Merrill's 1997 earnings estimate for USAirways now stands at $3.85 per share, revised upward from $3, on the belief that oil prices will stay down and that capacity expansion in the industry will not overwhelm growing demand this year.

QUICK TAKES: AMERICA ONLINE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %> surged $5 to $47 after the company announced the acquisition of LightSpeed Media Inc., a producer of online serials. Former NBC TV network miracle worker Brandon Tartikoff will come along in the deal as head of a new interactive entertainment division... CV THERAPEUTICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CVTX)") else Response.Write("(Nasdaq: CVTX)") end if %> moved up $1 7/8 to $10 on announcing an agreement with and an up-front cash transfer of $16 million from BIOGEN <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BGEN)") else Response.Write("(Nasdaq: BGEN)") end if %> to collaborate on a therapy for edema, which is associated with congestive heart failure... Clinical research organization CHRYSALIS INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CRLS)") else Response.Write("(Nasdaq: CRLS)") end if %> jumped $1 13/16 to $5 15/16 after Barron's Alan Abelson "put in a plug" for the company on behalf of an "investor friend," who called the company "dirt cheap"... CERBCO INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CERB)") else Response.Write("(Nasdaq: CERB)") end if %> rose $1 3/4 to $8 3/8 after the sewer and pipeline rehabilitation company announced that it will exit the office copier business... Newly public blood transfusion process company CERUS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CERS)") else Response.Write("(Nasdaq: CERS)") end if %> gained $1 1/4 to $10 5/8 after being rated an initial "buy" by Alex. Brown... ALPHANET SOLUTIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ALPH)") else Response.Write("(Nasdaq: ALPH)") end if %> gained $2 3/8 to $14 3/8 after systems integrator and support services company said that it has postponed an offering of two million shares... VEECO INSTRUMENTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VECO)") else Response.Write("(Nasdaq: VECO)") end if %> rose $4 1/2 to $29 after Merrill Lynch started coverage of the electronics capital equipment producer with a "buy" rating... State-owned airline CHINA EASTERN AIRLINES LTD. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CEA)") else Response.Write("(NYSE: CEA)") end if %> gained another $3 1/2 to $28 3/4 as the shares continue to be snapped up on Hong Kong's stock exchange... HERSHEY FOODS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HSY)") else Response.Write("(NYSE: HSY)") end if %> climbed $2 3/8 to $48 on being added to Goldman Sachs' "recommended" list with a "buy" rating... Surgical products company CLOSURE MEDICAL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CLSR)") else Response.Write("(Nasdaq: CLSR)") end if %> came back $2 to $16 3/4 after Friday's announcement of a 1.5 million share stock offering.

GOATS

OREGON METALLURGICAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: OREM)") else Response.Write("(Nasdaq: OREM)") end if %> was melted for a $5 loss to close at $21 1/8 after the maker of titanium sponges, ingots, and castings said 1997 sales will fall due to inventory accumulation at golf club makers. TITANIUM METALS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TIMT)") else Response.Write("(Nasdaq: TIMT)") end if %> fell $2 1/8 to $28 1/8 and RMI TITANIUM CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RTI)") else Response.Write("(NYSE: RTI)") end if %> was clubbed for a $1 loss to $19 1/8. COASTCAST CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PAR)") else Response.Write("(NYSE: PAR)") end if %>, a large maker of clubheads, hardly reacted through the day but finally closed off 4% and STURM RUGER & CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RGR)") else Response.Write("(NYSE: RGR)") end if %> barely budged. The thought of inventory accumulation scared investors in clubmaker CALLAWAY GOLF <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ELY)") else Response.Write("(NYSE: ELY)") end if %>, which shanked for a $1 7/8 loss to $30 3/8. Oregon Metallurgical also said that its customers were using scrap more efficiently, which would seem to handicap the news today.

Circuit board maker and contract manufacturer SIGMATRON INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SGMA)") else Response.Write("(Nasdaq: SGMA)") end if %> lost $1 1/4 to close at $16 as Q3 earnings reached their second-highest level in company history, while revenues of $21.9 million were a record. So what's the problem? One of them is that earnings per share (EPS) of $0.25 was down from the $0.26 recorded in last year's third quarter. Dilution was another problem, as net earnings grew while EPS, the more telling measure of shareholder value, fell. Investors probably feel like they got the shaft because the company was so nonchalant about last week's Monday plunge of $8 3/4. One might also observe that the company missed its earnings estimate. However, there was only one estimate (of $0.30) collected by First Call. Another estimate, not included in that survey, was that of Steven Kornfeld of NatWest, who had estimated EPS closer to $0.26.

QUICK CUTS: HMO obstetrics and maternity services provider MATRIA HEALTHCARE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MATR)") else Response.Write("(Nasdaq: MATR)") end if %> fell $1 to $4 1/2 after Adeza Biomedical Corp. sued the company for allegedly failing to promote products covered in an exclusive marketing partnership... CITRIX SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CTXS)") else Response.Write("(Nasdaq: CTXS)") end if %> fell $1 5/8 to $13 as a shareholder filed a lawsuit, purporting to be a class action, against the company... CNS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CNXS)") else Response.Write("(Nasdaq: CNXS)") end if %> dropped $1 7/8 to $9 3/8 after the Breathe Right nasal strips maker said Q1 earnings would fall significantly below estimates of $0.23 per share due to seasonal factors... Video game maker ELECTRONIC ARTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ERTS)") else Response.Write("(Nasdaq: ERTS)") end if %> slid $2 5/16 to $29 3/16 after Bear Stearns lowered its 1998 earnings estimate to $1.30 per share from $1.50... BIRMINGHAM STEEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BIR)") else Response.Write("(NYSE: BIR)") end if %> lost $2 1/4 to $15 3/8 after saying that start-up costs and unsatisfying results at its Cleveland facility will hamper Q3 results for the mini-mill company... Office supplies retailer OFFICE DEPOT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ODP)") else Response.Write("(NYSE: ODP)") end if %> was crunched for a $5 1/2 loss to $17 1/8 after an FTC panel rejected the company's bid to merge with STAPLES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SPLS)") else Response.Write("(Nasdaq: SPLS)") end if %>... GENRAD, INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GEN)") else Response.Write("(NYSE: GEN)") end if %> fell $4 3/8 to $13 7/8 after the process control company refuted rumors that it would miss its numbers by backing full-year estimates of $220-240 million in revenues and EPS of $1.25... TRACOR INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TTRR)") else Response.Write("(Nasdaq: TTRR)") end if %> softened $2 1/8 to $21 1/8 after Merrill Lynch downgraded the defense electronics firm's near- and long-term ratings... Insurance company DANIELSON HOLDING <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: DHC)") else Response.Write("(AMEX: DHC)") end if %> plunged $5 3/8 to $8 after announcing that PROGRESSIVE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PGR)") else Response.Write("(NYSE: PGR)") end if %> will not make an 11 million share investment in the company.

FOOL ON THE HILL
An Investment Opinion by MF Templar

Punditry

One of the apparent contradictions the Motley Fool presents to the world is that we ridicule pundits, yet we seem to have simply manufactured our own legion of alternative pundits to foist upon the world. Take me for example. Two times a day I get to write a column on some topic that deals peripherally with investing. No more than a writing, disembodied mind, my imperfect viewpoint is cast across cyberspace.

Although I cannot speak for the rest of the Fool, I can speak specifically as to why this column exists. When the Fool set about to cobble together a news product in early 1995, we did so for a few reasons. First and foremost, there was a tremendous market opportunity. At the time, no one else was offering an integrated picture of what had happened in the stock market that was available for dissemination that day. In fact, there is still very little in this product space, with the major new entrant in the product category (thestreet.com) going for day after coverage. The other reason why it was decided that a news product made sense was as an extension of the education effort, taking the real-time information that the market spewed out and trying to put a Foolish face on the front-end.

For me as a writer, a subjective column was an excellent way to approach this. Although it took until September of 1995 to really come up with a consistent "feel" for the column, the basic idea of offering an interpretation of the news as grounded in Folly was there from day one. Although the tone of this column sometimes belies its subjectivity, in the end I am comfortable that most long-time readers recognize that I am trying to interpret the facts at my disposal, not predict future price movements for individual securities.

When this column works best, it highlights an investment "problem" and offers a roster of possible solutions, normally settling on the one that appears to best reflect reality. Conceptually, the actual news is often secondary to this task, while by no means being unimportant. How does an investor set about interpreting information? What information has value and what information should one completely disregard? Working these issues out, day-by-day, in a real-time manner in a forum that attempts to be as responsive to its readers as is humanly possible is the goal, although sometimes we fall a bit short of that.

Don't get me wrong, the front half of the Lunchtime and Evening News is just that -- news. The goal there is to cover any stock moving 5% or more that day and try to explain why it has moved. Rather than empty talking heads spouting on about price targets and analyst recommendations, this part of the News vivisects actual stock price movements daily, almost always relating them directly to new information that has just hit the market. Although sometimes skeptical of the real value of the information, the goal remains to identify what new information arrived to change the perceived value of the business behind the shares.

That part of the News is a pretty secure world these days, particularly with Dale Wettlaufer (MF Raleigh) devoting almost all of his waking hours to it. Where the News can go astray sometimes -- when this column descends into punditry -- is, unfortunately, my department. Of course, I don't think true punditry is possible for the simple reason that there is an obvious feedback mechanism -- sending me mail at [email protected] or [email protected] is a pretty great way to let me know exactly what you think. In fact, I believe it is the equivalent of print journalists putting their home phone numbers underneath their bylines. You have an immediate way of telling me exactly how and why I got something wrong. There is no similar method for reaching the talking head on television that gets the story wrong.

On top of this, we issue relevant corrections in the next news product that goes out the door, unlike most major dailies, which issue corrections a week later in a small print column up near the front, or most wire services, which issue a separate press release the next day that no one sees. While you can say that we might be some rough beast slouching toward punditry on occasion, we are certainly not irretrievable. The goal here is not to move stocks, but to try to forward the general understanding of investing. As much as that is done, we reach our goal. As much as you see blind ego here, please reconsider. By multiplying one-to-one relationships again and again that allow the reader to respond, rather than simply creating one big one-to-many relationship where the receiver cannot turn around and send a message right back, I hope I lose the critical distance that is the core element of a pundit. The goal has never been to replace existing pundits with rubber-stamped Foolish ones, but to undo the science of punditry altogether.

CONFERENCE CALLS

CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %>
To Discuss Strategic Alliances
(800) 683-1535
Available from 4 PM EST to 3/12

GENZYME <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZ)") else Response.Write("(Nasdaq: GENZ)") end if %>, GENZYME TRANSGENICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GZTC)") else Response.Write("(Nasdaq: GZTC)") end if %>
(402) 220-4884 -- replay available through 3/12

03/07/97 (Friday)
GENZYME TISSUE REPAIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZL)") else Response.Write("(Nasdaq: GENZL)") end if %>
Re: Carticel
(402) 220-4882 -- replay available through 3/14

03/18/97 (Tuesday)
ROSS SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ROSS)") else Response.Write("(Nasdaq: ROSS)") end if %>
(402) 222-9948 -- replay available through 3/25

ANOTHER FOOLISH THING
Arizona Stock Analysis

Why Arizona? Because, like Delaware, many companies are chartered there, taking advantage of the beneficial business environment. Small, under-followed emerging Arizona growth companies were a terrific place to invest over the past few years and MF Yon, the Editor of "Arizona Stock Analysis," believes this will continue in the future. His strategy of identifying winners before the Street catches on has been most profitable, with his average selection up an annualized 236% through February. Obviously, there can be no assurance that future selections will enjoy the same returns, but Yon believes there is considerable merit to picking up the winners before the Street's analysts pile on. Yon began sharing his views online last fall in the "Folly in Arizona" folder (part of the 50 states boards) and his analysis has led to the publication of the Arizona Stock Analysis, a monthly newsletter available by e-mail or fax. If this piques your interest, check it out at keyword: FoolMart or at our or e-mail [email protected].

MORE FOOLISHNESS
A Foolish Library

For a change of pace, instead of using this space to plead with you to purchase some of our modest Foolish wares, allow us to shift the spotlight to some books not written by Fools. That's right -- if you're interested in reading some other perspectives on investing, but are just not sure where to begin, or which books might be too far from your Foolish center, head on over to FoolMart (at keyword: FoolMart on AOL or here on our website. There you'll find a host of titles which pass Foolish muster. Many were recommended by our own MF Templar and are found on desks and shelves around Fool HQ. We've read 'em, we like 'em, and we recommend them to you, too. Included are titles by Peter Lynch, Mary Meeker, Michael O'Higgins, David Chilton, William J. O'Neill, and Chuck Carlson. The browsing is free, and the buying is easy!

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

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