HEROES

Circuit board manufacturer JABIL CIRCUIT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: JBIL)") else Response.Write("(Nasdaq: JBIL)") end if %> jumped $6 to $45 5/8 after reporting record Q2 earnings per share (EPS) of $0.58, beating the mean estimate of $0.47. The company continued its climb following last year's disappointments when disk drive company QUANTUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QNTM)") else Response.Write("(Nasdaq: QNTM)") end if %> cut Jabil out of its supplier loop for disk drive circuit boards, and when other customers were dealing with inventory accumulation. As such, investors are focusing on sequential quarter-to-quarter growth where Jabil is racking up some impressive numbers. Revenues grew 9.4% while gross profits expanded 14.7%. Keeping operating costs under control, the company achieved sequential EPS growth of 23%. Robertson Stephens & Co. raised its 1997 EPS estimate to $2.25 and 1998's estimate to $2.80 from $2.50.

Web organizer YAHOO! <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: YHOO)") else Response.Write("(Nasdaq: YHOO)") end if %> picked up $2 1/8 to $24 3/4 after announcing a strategic relationship with NETSCAPE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NSCP)") else Response.Write("(Nasdaq: NSCP)") end if %>. The agreement calls for the construction of a service called Netscape Guide by Yahoo!, but more importantly, Yahoo!'s capabilities will be built into the task bar in the Netscape Communicator, which is aimed squarely at workgroup software from MICROSOFT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %> and IBM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBM)") else Response.Write("(NYSE: IBM)") end if %>. The partnership puts Yahoo! on the front lines of the "information push" (or "pull" as Netscape terms it) war, in that Yahoo! will be built into Netscape's Constellation product, which will integrate features such as a Marimba tuner. Yahoo! says this is a financially material deal.

AVANT! CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AVNT)") else Response.Write("(Nasdaq: AVNT)") end if %> gets into the heroes section today because it's the only other company we could find that has an exclamation point in its name. Actually, the company is a hero because it gained $2 to $26 3/4 after a federal court denied an appeal from semiconductor design software competitor CADENCE DESIGN SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CDN)") else Response.Write("(NYSE: CDN)") end if %> to bar the sale of certain Avant! products that Cadence alleged to contain stolen intellectual property. The ugly fight over 45,000 lines of code has been going on for more than a year. Cadence even said Avant! has paid for the silence of former Cadence executives, who pleaded the 5th Amendment in court depositions. Avant! still faces action in a civil lawsuit.

QUICK TAKES: Wide-format printer company RASTER GRAPHICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RGFX)") else Response.Write("(Nasdaq: RGFX)") end if %> rebounded $1 1/2 to $7 5/8 after Hambrecht & Quist cut earnings estimates yesterday because of a product introduction... British pharmaceutical company XENOVA GROUP ADS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: XNVAY)") else Response.Write("(Nasdaq: XNVAY)") end if %> gained $1 3/4 to $6 7/8 after announcing a product collaboration agreement with ZENECA GROUP PLC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ZEN)") else Response.Write("(NYSE: ZEN)") end if %>... Feeder airline MESABA HOLDINGS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MAIR)") else Response.Write("(Nasdaq: MAIR)") end if %> soared $1 1/2 higher to $13 after the company said its growth rate could be enhanced if NORTHWEST AIRLINES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NWAC)") else Response.Write("(Nasdaq: NWAC)") end if %> acquires Express Airlines... METAL MANAGEMENT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MTLM)") else Response.Write("(Nasdaq: MTLM)") end if %> rose $1 1/16 to $9 15/16 after the scrap metals dealer said it will merge with Proler Southwest Inc. and Proler Steelworks LLC one day after announcing an agreement to merge with Cozzi Iron & Metal... THORN APPLE VALLEY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TAVI)") else Response.Write("(Nasdaq: TAVI)") end if %> rose $1 1/4 to $16 3/4 after meat processor SMITHFIELD FOODS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SFDS)") else Response.Write("(Nasdaq: SFDS)") end if %> said it has offered to buy Thorn Apple Valley's 7.25% convertible debt, which has a conversion price of $18.25... Publishing and graphics software company ADOBE SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADBE)") else Response.Write("(Nasdaq: ADBE)") end if %> gained $3 3/4 to $38 5/8 after reporting Q1 EPS of $0.61 on revenues of $226 million, beating estimates of $0.51 and winning numerous upgrades from analysts... Printing giant R.R. DONNELLY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DNY)") else Response.Write("(NYSE: DNY)") end if %> gained $2 3/8 to $32 3/4 after the company named a new CEO... AAR CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AIR)") else Response.Write("(NYSE: AIR)") end if %> gained $2 to $29 after Alex. Brown raised its rating on the aviation services company to "buy" from "neutral"... Following a ruling against the European Union on banana import policies, CHIQUITA BRANDS INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CQB)") else Response.Write("(NYSE: CQB)") end if %> rose $1 to $16... Demographics information company AMERICAN LIST <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: AMZ)") else Response.Write("(AMEX: AMZ)") end if %> gained $3 1/4 to $25 5/8 after agreeing to be acquired by marketing company SNYDER COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SNC)") else Response.Write("(NYSE: SNC)") end if %> in deal valuing American List around $32 a share.

GOATS

Nearly anything involved in networking got killed today due a number of factors. 3COM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COMS)") else Response.Write("(Nasdaq: COMS)") end if %> fell $1 9/16 to $32 3/16 after that company's CEO, Eric Benhamou, told Bloomberg yesterday that the industry is having a tough quarter because of the daunting array of choices facing customers. 3Com reports third quarter earnings tomorrow, and investors aren't expecting too much with the price cuts the company has undertaken. CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %>, however, had its CEO, John Chambers, on the road endorsing the long-run revenue growth model of 30-50% per year for networking industry. Benhamou said the same, but that this quarter was not reflective of that growth rate, which Chambers may have tacitly acknowledged in saying that Internet service providers and the Baby Bells are taking a pause this quarter.

The networking picture won't really be complete until the market has seen the quarterly results of ASCEND COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %>, which fell $2 3/8 to $45 3/8, and 3Com merger partner U.S. ROBOTICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: USRX)") else Response.Write("(Nasdaq: USRX)") end if %>, which fell $2 5/8 to $54 1/8. Those companies, with a combined lock on the market for remote access concentrators, will show what is happening with line growth and subscriber growth, which aren't necessarily reflected by router revenue growth in the short-run. We'll still listen to these executives, and not investment gooroo Barton Biggs, who said in today's Wall Street Journal that he "believe[s] the tech cycle has peaked..." Wow, thanks for the news flash. These companies' stock prices have gone virtually nowhere, net, since one year ago, while earnings and revenues have grown at double and triple-digit rates during that time, and which are, in many cases, sitting on a ton of cash.

QUICK CUTS: Pharmaceutical development company ORAVAX <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORVX)") else Response.Write("(Nasdaq: ORVX)") end if %> lost $3 to $3 1/2 on reporting disappointing Phase III results on nosedrops intended to prevent certain respiratory tract infections in infants... INTEGRATED PACKING ASSEMBLY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IPAC)") else Response.Write("(Nasdaq: IPAC)") end if %> was battered $2 7/8 lower to $4 1/4 after announcing its expectation for a Q1 loss of $2 million to $2.5 million on revenues of $5-6 million... Graphics chip company TRIDENT MICROSYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TRID)") else Response.Write("(Nasdaq: TRID)") end if %> fell $3 1/2 to $14 3/8 after Hambrecht & Quist downgraded the shares to "buy" from "strong buy"... That firm also sent OAK TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: OAKT)") else Response.Write("(Nasdaq: OAKT)") end if %> $1 lower to $10 1/8, saying the CDROM controller company's shares face "limited upside"... Former IBM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBM)") else Response.Write("(NYSE: IBM)") end if %> unit LEXMARK INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LXK)") else Response.Write("(NYSE: LXK)") end if %> fell $3 7/8 to $23 7/8 after the printer manufacturer said Q1 revenues will fall below estimates but earnings will meet analysts' estimates of $0.40... BANGOR HYDRO ELECTRIC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BGR)") else Response.Write("(NYSE: BGR)") end if %> lost $1 to $6 5/8 after the company said it has suspended its dividend on common shares... Specialty chemicals company ROHM & HAAS CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ROH)") else Response.Write("(NYSE: ROH)") end if %> lost $8 1/2 to $78 3/4 after the company said Q1 EPS will miss estimates of about $1.70, but will be above last year's earnings of $1.46 per share... AMERICA ONLINE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %> fell $3 7/8 to $38 7/8 after a number of filings for insider stock sales popped up on Dow Jones this morning...Teleservices company SITEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SWW)") else Response.Write("(NYSE: SWW)") end if %> lost $1 1/8 to $15 1/4 on announcing the acquisition of a small U.K. firm, L&R Group Ltd.

Corrections and Clarifications: In yesterday's Evening News, we mistakenly cited the earnings estimate for SOLECTRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLR)") else Response.Write("(NYSE: SLR)") end if %> as being $0.70 per share. That number was for the May quarter. Solectron met estimates of $0.65 per share for its February quarter.

In yesterday's "Fool on the Hill," it was stated that only six stock mutual funds outperformed the S&P 500 over the past five years. This should have said that only six stock mutual funds outperformed the S&P 500 in each of the past five years.

FOOL ON THE HILL
An Investment Opinion by MF Templar

My God -- The House Is Down Again!?

"Holy smokes! The house is down again today!" cried Burt Campbell as he peered at the ticker tape scrolling across CNHC.

His wife, Dottie, called out from the kitchen, "What's wrong, honey?"

"The house. It is down again today. The ticker is reporting the quote for 121 Maple Lane as down $5000 today." Burt grimaced angrily and pounded on the arm of his recliner with a balled-up fist.

"Could it be a mistake? You know, last week you were following 120 Maple Lane for three days before you figured out what was wrong." Dottie turned off the kitchen faucet and proceeded to begin loading the dishwasher.

"Dag nabbit, I am positive it was 121 Maple. There was breaking news on the whole development earlier today." Burt stood up and began to pace back and forth across the sparsely decorated living room. Boxes strewn about from their recent move still littered the common area. "It appears the Homeowner's Association is talking about raising fees again for the swimming pool -- knocked the snot out of the entire street, down 5% on the day."

Burt listened for a few minutes to the sound of dishes being racked together in the new dishwasher, shook his head in an expression of frustration, and went over to the dining room table. Sprawled out on its surface was a carefully drawn chart entitled "121 Maple Lane," showing daily price information on a graph. He grabbed a sharp pencil and began to draw in today's closing price.

"Honey, what's the house worth today at the close?" Dottie was dropping the last few pieces of silverware into the small rack in the dishwasher. She paused to scrape a desiccated food particle off of a fork with her fingernail.

"$120,000. It is down $20,000 since we bought the house three weeks ago."

"Well, we have had the whole Homeowner's thing, and then the neighbors did get a pit bull, and we did scratch up the house a bit in the process of moving in." Dottie closed the dishwasher and turned it on, desperately hoping Burt would not do anything rash.

"My goodness, the house has broken critical support at $121,000 and just fell below its 200-day moving average. The bids are drying up for houses in this neighborhood as well, Dottie... by golly, the market knows something here that we don't."

"I'm sure it will recover, honey." Dottie walked into the dining room to rub her husband's neck. Burt was putting the finishing touches on his point-and-figure chart and did not look very pleased with the results.

"That's it. We're selling." Burt suddenly rushed for the phone, dialing their 24-hour real estate broker. "I refuse to see our life's savings mashed by a downturn in the real estate market."

"Burt, we just moved in."

"And we can move out just as fast. Cut your losses, let your winning houses grow." Burt had already dialed and Ken Smith's brusque voice barked out a greeting on the other end. "Ken, Burt Campbell here... we are going to sell the house... yeah, I saw it broke the 200... and I am not sure what kind of quarterly report we can put out... I mean, the kitchen was just refinished."

"Honey... don't you think we should talk this over..."

"Good, $119,000 on the bid? I'll take it." Burt hung up the phone, moving to the bottom of the stairs to bellow at his kids. "Alice? Charlie? Pack up your stuff, kids. We are moving out of this house tomorrow." A few fleeting groans floated down the stairs, but from the footfalls Dottie knew the children had gone to comply with their father's wishes.

"Burt, I am just not sure about this. I mean, we have only been here..."

Burt cut her off entirely. "Dottie, I have seen the price of a house fall as much as 50% in a few days. They are a necessary evil. When you see one going south on you, though, you absolutely have to get out." Burt went to the living room to retrieve the newspaper in order to scope out a new abode. "I think the houses on Ventura Avenue have been rising lately. Maybe we should buy one of them to live in."

Dottie knew it was pointless to argue. Thankfully, any loss would be made up by their retirement portfolio. Although quotes for the stocks came out very infrequently, she knew that they had been faring handsomely over the last ten years. They had purchased the portfolio and mortgaged 90% of it, doing quite well in spite of the high margin interest. Over the last twenty years, their portfolio had more than doubled in spite of the fact that the margin interest was 8%. Thank goodness stocks did not have daily quotes, she reflected for a moment. Otherwise people would buy and sell them as frequently as they did houses.

[Note: The above article is an encore presentation of "Fool on the Hill." It was originally published in the Evening News on Aug. 8, 1996.]

CONFERENCE CALLS

ADOBE SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADBE)") else Response.Write("(Nasdaq: ADBE)") end if %>
available until 3/20
(800) 633-8284 (reservation # 2508068)

TRO LEARNING <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TUTR)") else Response.Write("(Nasdaq: TUTR)") end if %>
(402) 220-2139 (code: 3137) -- replay until 3/19

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

SEPRACOR INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SEPR)") else Response.Write("(Nasdaq: SEPR)") end if %>
To Discuss Results of levalbuterol Phase III results
Available until 8 PM on Wednesday, March 19
(402) 220-1011

03/20/97 (Thursday)
SUNGLASS HUT INT'L <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RAYS)") else Response.Write("(Nasdaq: RAYS)") end if %>
(800) 475-6701 (access code: 334838) -- replay through midnight 3/27

03/20/97 (Thursday)
NIKE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NKE)") else Response.Write("(NYSE: NKE)") end if %>
4:45 p.m. EST
(800) 633-8284 (reservation # 2559993) -- replay

03/20/97 (Thursday)
BRODERBUND SOFTWARE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BROD)") else Response.Write("(Nasdaq: BROD)") end if %>
(800) 642-1687 (reservation # 301115) -- replay avail through 3/23

03/20/97 (Thursday)
3COM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COMS)") else Response.Write("(Nasdaq: COMS)") end if %>
available after 7:00 PM EST through 7:00 PM EST on 3/21
(800) 633-8284 (reservation # 2468610) -- replay

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
Road to the Final Fool!

Road to the Final Fool: It's time for the Fool Dome's annual contest, which follows the men's NCAA tournament, round by round. The first round features 64 questions, one on each team in the tournament. The fun is fast and Foolish, and if you are Foolish enough to be the Final Fool, you will win a free golf vacation in Phoenix, AZ, courtesy of the folks at Preview Travel. You game?

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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