HEROES

Shipping company APL LIMITED <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: APL)") else Response.Write("(NYSE: APL)") end if %> steamed $8 1/4 higher to $29 3/4 after announcing an agreement to be acquired by Singapore shipping company Neptune Orient Lines Ltd. for $33.50 per share, or $825 million. Formerly known as American President Lines, APL ships intermodal containers using its more than 25 intermodal container ships and feeder vessels operating out of more than 60 ports worldwide. On an enterprise value basis (equity + long term debt - cash and short-term investments), the company is being acquired at 0.45 times 1996 revenues and 8.8 times operating earnings.

Zero-emission engine company BALLARD POWER SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BLDPF)") else Response.Write("(Nasdaq: BLDPF)") end if %> gained $2 7/16 to $28 3/16 announcing a joint venture with German industrial conglomerate DAIMLER-BENZ AG <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DAI)") else Response.Write("(NYSE: DAI)") end if %>. The two firms will invest $450 million to produce non-combustion engines using Ballard's fuel cell technology. Ballard's total cash commitment to the venture will be about $50 million. The rest of its investment will come from the contribution of its fuel cell technology, to which Daimler Benz will add its fuel cell knowledge and cash of around $57 million. The sweet thing for Ballard is that it worked out a sale of its shares at around $10 above Friday's close of $25 3/4 -- Daimler Benz purchased about 25% of the company for $35 per share, injecting $142 million into Ballard's treasury. The joint venture will sell its zero-emission engines to all carmakers, not just Mercedes Benz.

QUICK TAKES: FPA MEDICAL MANAGEMENT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FPAM)") else Response.Write("(Nasdaq: FPAM)") end if %> gained $2 to $17 1/2 after HMO and medical insurance company FOUNDATION HEALTH SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FHS)") else Response.Write("(NYSE: FHS)") end if %> said it does not have immediate plans to sell over four million shares of FPA... CAD/CAM software company AUTODESK INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADSK)") else Response.Write("(Nasdaq: ADSK)") end if %> ran up $3 3/8 to $32 7/8 after Goldman Sachs raised its rating on the company to "trading buy" from "market perform"... IMMUNEX CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IMNX)") else Response.Write("(Nasdaq: IMNX)") end if %> gained $3 1/2 to $30 1/4 after announcing on Friday results of tests showing the safety of its Enbrel drug for rheumatoid arthritis... Commercial properties REIT SANTA ANITA REALTY ENTERPRISES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SAR)") else Response.Write("(NYSE: SAR)") end if %> rose $2 to $29 3/8 after it announced a merger with healthcare REIT MEDITRUST <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MT)") else Response.Write("(NYSE: MT)") end if %>... INLAND STEEL INDUSTRIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IAD)") else Response.Write("(NYSE: IAD)") end if %> gained $1 1/4 to $19 5/8 after reporting estimate-beating Q1 EPS of $0.59 on revenues of $1.21 billion... Synthetic skin company ORGANOGENESIS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: ORG)") else Response.Write("(AMEX: ORG)") end if %> added $1 to $20 after the company announced a 25% stock dividend... INTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> added $3 1/4 to $133 3/4 before reporting Q1 EPS of $2.20, up 116% from last year and 6.3% above the consensus estimate.

GOATS

Pipe systems fabrication company SHAW GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SGR)") else Response.Write("(NYSE: SGR)") end if %> melted $8 5/8 to $13 after the company reported Q2 EPS of $0.31, up 55% from last year but below the mean estimate of $0.32. What really killed the stock today was the company's forward guidance, in which they warned that the dollar's strength will hurt revenues and earnings for the second half of the year. That's all some of the remaining value investors needed to hear to get the heck away. That group picked up the company earlier this year when the energy sector momentum players dumped Shaw after it started cashing in on its valuation to sell shares and pay down debt. Some investors are looking at the company's sequential revenue growth of 13% (on a pro-forma basis, reflecting the NapTECH acquisition) and wondering if less than 11 times trailing earnings isn't taking the selling too far.

AIRGAS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ARG)") else Response.Write("(NYSE: ARG)") end if %> was deflated $2 7/8 to $14 3/8 after the industrial gases company said it will take a non-recurring charge of $26 million in its fourth quarter related to its purchase of allegedly corrupted goods from DISCOUNT AUTO PARTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DAP)") else Response.Write("(NYSE: DAP)") end if %>, which has yet to recover since the dispute came to light earlier this year. The company also said that its business was strong on a cash flow basis in its fourth quarter, but that it will miss the mean estimate of $0.19 due to new operating units.

QUICK CUTS: LEASING SOLUTIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LSSI)") else Response.Write("(Nasdaq: LSSI)") end if %> was bled dry, falling $9 3/4 to $7 7/8 after the PC and equipment leasing company said DELL COMPUTER <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DELL)") else Response.Write("(Nasdaq: DELL)") end if %> will form its own leasing unit, which will hurt Leasing Solution's "near-term growth"... Diagnostic products company MERIDIAN DIAGNOSTICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: KITS)") else Response.Write("(Nasdaq: KITS)") end if %> was shot down $4 3/8 to $5 3/4 after pre-announcing Q2 EPS of $0.08, which will miss the sole estimate of $0.12 per share... METRICOM INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MCOM)") else Response.Write("(Nasdaq: MCOM)") end if %> lost $1 1/8 to $7 1/2 as the wireless communications company heads into tomorrow's FCC spectrum auction, where investors fear competition will be fierce and the winners will all be overpaying... CBT GROUP PLC <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CBTSY)") else Response.Write("(Nasdaq: CBTSY)") end if %> skidded $3 1/2 to $43 1/4 after reporting Q1 EPS of $0.18 (before acquisition expenses), beating the First Call estimate of $0.16, on revenues of $22 million... Oil and gas exploration company FX ENERGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FXEN)") else Response.Write("(Nasdaq: FXEN)") end if %> slid $3 1/2 to $6 1/8 after hitting water at its Orneta #1 well... GRACO INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GGG)") else Response.Write("(NYSE: GGG)") end if %> fell $4 to $26 after the fluid handling equipment manufacturer reported Q1 EPS of $0.35, missing estimates of $0.42... Cosmetics company ESTEE LAUDER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EL)") else Response.Write("(NYSE: EL)") end if %> was marked down $2 5/8 to $43 1/8 despite the company saying it is "comfortable that its earnings for fiscal 1997 will be in line with analysts' expectations" of $1.40... BAY MEADOWS OPERATING CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: CJ)") else Response.Write("(AMEX: CJ)") end if %> fell $2 1/8 to $39 1/2 on worries that the announcement of a merger between REITs PATRIOT AMERICAN HOSPITALITY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PAH)") else Response.Write("(NYSE: PAH)") end if %> and WYNDHAM HOTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WYN)") else Response.Write("(NYSE: WYN)") end if %> will jeopardize the deal between Patriot and Bay Meadows.

FOOL ON THE HILL
An Investment Opinion by MF Templar

Jury Rules Against Novellus

NOVELLUS SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NVLS)") else Response.Write("(Nasdaq: NVLS)") end if %> was clocked for $22 1/4 to $53 after losing a patent battle with industry giant APPLIED MATERIALS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMAT)") else Response.Write("(Nasdaq: AMAT)") end if %> -- and this in spite of beating consensus earnings estimates. This morning, Novellus reported earnings of $0.91 per share in the fiscal first quarter versus $1.55 per share last year, two cents higher than First Call's estimates. This mixed performance on the earnings front was overshadowed by Applied's victory over the San Jose-based manufacturer of chemical vapor deposition (CVD) semiconductor capital equipment.

A jury ruled on April 11th that certain Novellus CVD products infringed on a patent owned by Applied for an insulating or "dielectric" film called TEOS. Although damages have not been awarded, Novellus will now be forced to stop taking new domestic orders for machines that use TEOS -- something that could have a devastating effect on near-term earnings. While Novellus will offer "alternative" process chemistries that do not use TEOS for its existing customers, it is uncertain whether or not customers will want to switch or will simply order TEOS-based CVD machines from Applied. Given that CVD machines make up the bulk of Novellus revenues, this combined with potential damages resulting from the lawsuit and costs associated with retrofitting existing machines with non-TEOS chemistries could put a crimp in current estimates for the fiscal year of $4.22 EPS.

TEOS is a type of insulating or "dielectric" film that is deposited on wafers during the manufacture of a semiconductor chip. The Concept Two-Dielectric CVD machine that Novellus manufactures lays Oxide, Nitride and TEOS films on the wafer. It is alternating, microscopic layers of conductive and semi-conductive materials that make semiconductors function, making CVD machines one of the mainstays of any semiconductor fabrication plant. In the eyes of many, the timing of this jury decision for Novellus could not be worse. Just when the industry's slump seems to be ending with Hewlett-Packard's recent announcement of a multi-billion dollar fab (wafer fabrication plant), Novellus has been blocked from selling new equipment with TEOS-based deposition technology at any domestic facilities.

Although the high degree of uncertainty has created a huge selling spasm in the stock, things might not be as bad as they seem. "The TEOS process is used commonly but considered by many to be a difficult step," stated Carl Johnson of Infrastructure (www.infras.com). "Like any process step it will eventually be replaced by some new technology." Novellus introduced SPEED on the Concept Two platform in 1996, the semiconductor industry's first high density plasma deposition solution capable of high volume manufacturing. The company has also been on the forefront of changes in metal and inter-metal dielectrics (IMD). If semiconductor manufacturers adopt new process technologies in the next wave of fabs they build, the scuttlebutt over TEOS might be much ado about nothing in twelve to twenty-four months.

With a market capitalization of $908.3 million, $183.4 million in cash and short-term investments and no long-term debt, Novellus has an enterprise value of $724.9 million. The company trades at 1.6 times its trailing sales of $448 million -- not necessarily an unreasonable number given the looming order uncertainty over the next few months. An investor interested in the company would need to figure out how important the TEOS step is and what percentage of semiconductor manufacturers need to utilize it. From this, investors could get a sense of what Novellus revenues will be over the next few quarters and thus be able to determine whether today's price represents a value for investors interested in a cutting edge CVD company.

CONFERENCE CALLS

CASCADE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCC)") else Response.Write("(Nasdaq: CSCC)") end if %>
(800) 938-0941 (code: 319193) -- replay through midnight 4/15

ASCEND COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %>
(800) 475-6701 (code: 336995) -- replay through 4/18 (North America)
(320) 365-3844 (code: 336995) -- replay through 4/18 (International)

INTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %>
(402) 280-9021 -- replay through 4/18

4/15/97 (Tuesday)
SPRINT CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FON)") else Response.Write("(NYSE: FON)") end if %>
(800) 659-4363 U.S.
(816) 650-0613 Int'l
Replayed at 10:30 AM EDT, 2:30 PM EDT, and 4:30 PM EDT

4/15/97 (Tuesday)
MFRI INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MFRI)") else Response.Write("(Nasdaq: MFRI)") end if %>
(800) 275-2442

4/17/97 (Thursday)
COMPUCOM SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CPCM)") else Response.Write("(Nasdaq: CPCM)") end if %>
(800) 642-1687 (code 353379)
Replay available from 4/17 through 4/19

MORE FOOLISHNESS
Your Own Number Cruncher

Valuations! Ratios! Factors! Rates! There are so many numbers tossed around Fooldom that it's easy to get lost, swimming in a sea of calculations, adrift on the waves of fractional roots, desperately searching for the shores of mathmatical reason. Okay, that might be a bit dramatic, but there are a lot of numbers to crunch. Enter Fooldom's brand-new and exciting ValuTool! This Foolish software package is a simple and powerful way to work with the vast amount of data necessary to determine the value of a stock. Give ValuTool the raw numbers and it'll compute many of the ratios and valuations that you read about as you wander through Fooldom and beyond -- The Foolish eight, PEG ratio, and lots more! Spend more of your time researching and less of it doing calculations. Check out ValuTool in FoolMart today!

Randy Befumo (TMF Templar), a Fool
Fool Plate Special

Dale Wettlaufer (TMF Raleigh), another Fool
Ups & Downs

Brian Bauer (TMF Hoops), and yet another Fool
Editing