DJIA:           7381.67   -125.00       (-1.67%)
S&P 500:         903.68    -15.48       (-1.68%)
Nasdaq:         1570.41    -32.34       (-2.02%)
30-Year Bond   103 2/32    +22/32   6.14% Yield

HEROES

Telecommunications holding company ACC CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ACCC)") else Response.Write("(Nasdaq: ACCC)") end if %> gained $12 1/4 to $39 3/8 after receiving an unsolicited bid from TEL-SAVE HOLDINGS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TALK)") else Response.Write("(Nasdaq: TALK)") end if %> regarding a potential merger. Tel-Save proposed an exchange of $50 in Tel-Save common stock for each share of ACC common stock, which represented an approximately 85% premium to ACC Corp.'s price at the time of the offer. International long distance (switch-based) constituted 90% of ACC's most recently reported revenues, and therein lies the attraction for Tele-Save, which wants to reduce the fees it pays to other carriers to complete its international calls. ACC carries traffic between the U.S., U.K., and Canada, and is building a network in Germany, which gels well with Tele-Save's recent $100 million deal to market long-distance services to America Online customers. With ACC's assets, Tele-Save can offer more compelling service to all of AOL's customers. Tele-Save will cut its offer to $40 per share if ACC goes ahead with its plans to purchase long-distance company U.S. WATS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: USWI)") else Response.Write("(Nasdaq: USWI)") end if %>, which has operations that are redundant with Tele-Save.

Computer service giant ELECTRONIC DATA SYSTEMS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EDS)") else Response.Write("(NYSE: EDS)") end if %> gained $5 1/4 to $37 7/8 after the company reported Q3 EPS of $0.50 (excluding a charge), which beat estimates of $0.45. The charge of $0.03 per share was for an asset disposal announced in the previous quarter. Investors let out a hybrid cheer/sigh in hopes that the company's interminable quarterly surprises are behind it. EDS has fallen short of estimates in its last three quarters, and in the last year its share price has depreciated 14.8%. EDS's cost cutting ($750 million planned for 1998) coupled with its move toward higher revenue higher margin services (like business process management) have put the company in a solid position going forward. In the third quarter the company booked $4.4 billion in new contracts to manage client's computer systems and is looking toward continuing the momentum in the fourth quarter by booking a $4.4 billion contract with BELLSOUTH CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BLS)") else Response.Write("(NYSE: BLS)") end if %>.

QUICK TAKES: Home equity loan provider for those with "bad credit" histories AAMES FINANCIAL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AAM)") else Response.Write("(NYSE: AAM)") end if %> shot $1 1/4 higher to $14 3/8 after reporting Q1 EPS of $0.45, topping estimates of $0.40... Property and casualty insurer AMERICAN FINANCIAL GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AFG)") else Response.Write("(NYSE: AFG)") end if %> added $3 1/4 to $37 13/16 after announcing an official meeting date for consideration of numerous issues to "reduce its corporate expenses and simplify the public company structure"... Texas refinery CROWN CENTRAL PETROLUEM <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: CNP.A)") else Response.Write("(AMEX: CNP.A)") end if %> was up $1 to $19 along with its B shares <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CNP.B)") else Response.Write("(Nasdaq: CNP.B)") end if %>, up $1 1/16 to $18 1/4, after reporting Q3 EPS of $1.16 versus a prior period loss of $0.37 per share... LIFE BANCORP <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LIFB)") else Response.Write("(Nasdaq: LIFB)") end if %> rose $4 9/16 to $29 15/16 after accepting an offer to merge with BB&T CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BBT)") else Response.Write("(NYSE: BBT)") end if %> in a stock transaction valued at $359.2 million. BB&T will have approximately $3.5 billion in assets and $2.3 billion in deposits in Virginia following the merger.

Contract manufacturer of circuit boards and other electronic components IEC ELECTRONICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IECE)") else Response.Write("(Nasdaq: IECE)") end if %> rose $15/16 to $18 1/16 after reporting that its sales and earnings for the fourth fiscal quarter ending September 30 should be "substantially above current estimates"... Semiconductor testing equipment company ASE TEST LTD. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASTSF)") else Response.Write("(Nasdaq: ASTSF)") end if %> moved $5 15/16 to $52 1/16 after Cowen & Co. reiterated its "strong buy" rating on the firm... Hazardous materials company SEVENSON ENVIRONMENTAL SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SEVN)") else Response.Write("(Nasdaq: SEVN)") end if %> rose $1 3/8 to $15 3/8 after announcing that third quarter backlog rose to $76 million... VIVID TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VVID)") else Response.Write("(Nasdaq: VVID)") end if %>, a maker of explosives detection equipment, gained $1 5/8 to $12 3/4 after reporting Q1 EPS of $0.20 versus estimates of $0.19.

GOATS

Restaurant franchisor and specialty finance company BOSTON CHICKEN <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BOST)") else Response.Write("(Nasdaq: BOST)") end if %> declined $2 3/16 to $10 7/16 on announcing that it plans to convert the debt that it is owed by its Boston Market area developers into equity in the actual restaurant operating companies of those developers. Financially, that changes the entire business model for Boston Chicken, meaning that today's miss of third quarter earnings estimates was irrelevant except for the fact that average store sales for the quarter dropped more than management expected. EINSTEIN/NOAH BAGEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ENBX)") else Response.Write("(Nasdaq: ENBX)") end if %>, which is majority owned by Boston Chicken, was sliced for a $1 5/16 loss to $8 15/16 on announcing that it is considering a move similar to that of Boston Chicken and that it is pressing ahead with further store developments.

Financial services software company PEGASYSTEMS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PEGA)") else Response.Write("(Nasdaq: PEGA)") end if %> was flattened for a $9 3/8 loss to $18 3/8 after announcing that its auditor's indecision over revenue accounting will delay the reporting of third quarter results and may force the company to restate second quarter earnings and revenues. The company says a restatement of its June quarter revenues could affect up to $5 million of the $12.2 million in revenues booked. If that affects software licensing revenues, then nearly all of that revenue loss would be taken from net income, since cost of goods sold for software licenses was only $10,000 last quarter. In light of such a large profit uncertainty, Goldman Sachs took the shares off its "recommended" list and lowered its rating on the firm to "market outperform." If the company's management were somehow shady, though, that rating would be generous, indicating that the analyst following the company believes that this truly is indecision on the part of the company's auditors.

Physician practice management company PHYCOR INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PHYC)") else Response.Write("(Nasdaq: PHYC)") end if %> dropped $5 9/16 to $24 after working out an agreement to acquire MEDPARTNERS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MDM)") else Response.Write("(NYSE: MDM)") end if %> in a stock swap valuing each MedPartners share at 1.18 shares of Phycor. The deal looks accretive to Phycor's 1998 earnings per share, but investors might be worried about the challenges of integrating a much larger company as well as the management issues that go along with such deals. Phycor is taking over a company with about six times its quarterly revenues. It's not totally clear if the larger such a service company becomes, the larger its efficiencies become. It's possible that diseconomies of scale can kick in the larger a company becomes. CS First Boston lowered its rating on the shares of MedPartners, while Merrill Lynch downgraded Phycor. Why MedPartners gets downgraded on day it agrees to merge with a company that has achieved annual rates of return almost five times greater than it has been able to achieve alone is a mystery to some observers.

Explosives detection systems company INVISION TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INVN)") else Response.Write("(Nasdaq: INVN)") end if %> fell $1 11/6 to $10 11/16 after reporting better-than-expected Q3 EPS of $0.15. Today's share price decline can be attributed to the company's statement that it is not aware of specific funding for Federal Aviation Administration purchases of its equipment in the coming year, but it believes that funding will become available. InVision came to the fore in June of 1996 following the explosion of TWA Flight 800. Since the spike up in the share price of the company in that month, very little shareholder return has been created. Without some sort of visibility on future revenues and earnings and only guesses that FAA appropriations will materialize, investors and management should probably focus on the possibilities of foreign sales.

BANCO DE GALICIA Y BUENOS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BGALY)") else Response.Write("(Nasdaq: BGALY)") end if %> lost $3 1/4 to $24 as investors worry that credit rating agencies will lower their debt ratings on Latin American banks and even the sovereign debt of Latin American countries. Banco de G&B investors worry about Argentina's debt rating since the Argentine government has pegged its peso 1-for-1 to the U.S. dollar and because Argentina already has a low debt rating. Brazilian bank UNIBANCO <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UBB)") else Response.Write("(NYSE: UBB)") end if %> fell $1 7/8 to $28 1/4 on worries of financial difficulties in the wake of extreme volatility in Latin American markets. For more on the current situation in Brazil, check out the Brazil FoolWire report.

QUICK CUTS: ANCOR COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ANCR)") else Response.Write("(Nasdaq: ANCR)") end if %>, a developer of fibre channel switches for data networks, fell $1 3/4 to $6 1/4 after reporting Q3 revenues of $3.4 million, $900,000 in one-time charges, write-downs of certain inventories, and forecasting a sequential decline in fourth quarter revenues... Medical software company PHYSICIAN COMPUTER NETWORK <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PCNI)") else Response.Write("(Nasdaq: PCNI)") end if %> fell $1 3/8 to $5 1/16 on reporting Q3 EPS of $0.06, falling short of the First Call mean estimate of $0.08, on lower-than-expected sales at its HealthPoint joint venture... QUAKER FABRIC <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QFAB)") else Response.Write("(Nasdaq: QFAB)") end if %> lost $3 3/4 to $19 after the maker of upholstery fabrics said transition costs involved in increasing production potential will hurt short-term earnings results... WASTE MANAGEMENT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMX)") else Response.Write("(NYSE: WMX)") end if %> fell $5 3/4 to $23 1/4 after the company's Chairman and CEO, who has been CEO of the company for about one quarter, resigned to re-join SPRINT CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FON)") else Response.Write("(NYSE: FON)") end if %>. WMX's Chief Financial Officer has also tendered his resignation.

Engineering and construction firm CHICAGO BRIDGE & IRON CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CBI)") else Response.Write("(NYSE: CBI)") end if %> lost $3 7/8 to $16 3/4 after the company reported Q3 EPS (before a charge) of $0.09, below estimates of $0.25, due to higher-than-expected start-up costs. The company also said that it will incur higher costs in the coming quarter... Power cogeneration company CALPINE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPN)") else Response.Write("(NYSE: CPN)") end if %> fell $2 15/16 to $16 1/8 on reporting a 31% increase in Q3 revenues and EPS of $0.91, up 21% over last year but below estimates of $1.06... DATA GENERAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DGN)") else Response.Write("(NYSE: DGN)") end if %> gave up $4 3/8 to $19 after the maker of servers and mass storage devices reported record annual revenues and fourth quarter EPS of $0.35, which fell short of the First Call mean EPS estimate of $0.37... Mexican Coca-Cola bottler COCA-COLA FEMSA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KOF)") else Response.Write("(NYSE: KOF)") end if %> lost some of its fizz, falling $6 to $42 as the Mexican Bolsa index fell 3.4% today.

Brazilian telecom giant TELEBRAS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TBR)") else Response.Write("(NYSE: TBR)") end if %> descended $11 1/8 to $ 92 7/8 as the Brazilian Bovespa index declined nearly 10%... TELECOM ARGENTINA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TEO)") else Response.Write("(NYSE: TEO)") end if %> tumbled $2 3/16 to $24 3/4, contributing to a 9% decline in the Merval index... Specialty polymers manufacturer POLYMER GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PGH)") else Response.Write("(NYSE: PGH)") end if %> frayed $1 1/4 to $11 3/4 after reporting Q3 net income (before extraordinary items) of $0.09 a share, well short of the mean estimate of $0.21 due to shipment delays from two customers... SILICON GRAPHICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SGI)") else Response.Write("(NYSE: SGI)") end if %> slid $1 1/2 to $14 1/4 on announcing the resignation of CEO Ed McCracken as well as the termination of 1,000 employee positions... DRAM and PC producer MICRON TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MU)") else Response.Write("(NYSE: MU)") end if %> fell $2 to $25 1/4 as the price of memory chips continues to fall while East Asian producers clear out inventory, ending a regrettable move to hold back supply from the market... TEXAS INSTRUMENTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TXN)") else Response.Write("(NYSE: TXN)") end if %> was whacked for a $11 9/16 loss to $102 7/8 even though it is much less dependant upon DRAM prices than Micron.

FOOL ON THE HILL
An Investment Opinion by Randy Befumo

Don't Worry, Refinance

Sick of watching volatile stock market indexes seesaw throughout the day? The past few days have been pretty rough ones for equity investors -- particularly those focusing a lot of extra attention on their supposedly long-term investments. Rather than helplessly obsessing about how much you have made or lost on volatile market days, there is a way you may be able to save thousands of dollars over a few decades. In fact, you could conceivably save so much money that you offset any losses you are currently taking in your stock portfolio. Just refinance your mortgage.

As Asian economies have imploded and South American economies have followed, investors worldwide have fled to quality -- the quality of long-term U.S. bonds. Yields on 30-year government bonds have plunged over the last two weeks from an already low 6.44% to a staggeringly low 6.16%. At 6.16%, this yield is closing in on the 1993 lows of 5.9%. In fact, the only time bond yields have been lower (besides 1993) is 1972, before inflation-driven hysteria drove bonds to over 10% yields. All of the money flowing into bonds has driven yields down to levels rarely seen by most homeowners.

If you missed the 1993 refinancing boom, your big chance is right now. Refinancing, simply put, is when you take out a new mortgage at a different interest rate than the current mortgage you have on your home. In fact, in some creative refinancings you can actually take out equity in order to pay down credit card debt or make long-term investments in stocks. Because mortgage interest is tax-deductible, the effective yield of a mortgage is the interest rate minus the rate multiplied by your tax bracket. Investors in the 33% bracket with a 7.5% mortgage are effectively paying 5%.

Is it really worth it to refinance? If you want to reduce total interest costs or make lower monthly payments in order to increase the amount you are saving for retirement, it definitely can be worth it. The first step is to assess all the myriad costs associated with a refinancing a mortgage. These may include, but are not limited to: an origination fee, discount points, an appraisal, a credit report, processing, title insurance, and an escrow fee. You then need to peruse the available loans (made easy by websites like HomeShark) and see what interest rates you can get and what "points" you might have to pay (not all mortgage loans require points). A point is equal to 1% of the value of your loan and is paid upfront when you close the loan.

Interest rates that are lower by a percentage point or even a half of a percentage point can result in tremendous interest savings over fifteen to thirty years, depending on how much you borrow. If you borrow $100,000 at 7% instead of 8% for thirty years, for instance, you will save about $25,000 over the length of the loan. If you put that $69 a month you save into the S&P 500, at the S&P's historical rate of return of 11% per year, in thirty years you would have $174,000. Bigger interest rate swings and larger loan amounts can result in even more savings, and potentially more in future savings. Heck, you could potentially offset any losses you might have sustained in your portfolio this week by doing some preliminary work on refinancing. Saving thousands of dollars in needless interest payments will certainly take your mind off of that pesky market.

CONFERENCE CALLS

BJ SERVICES CO <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BJS)") else Response.Write("(NYSE: BJS)") end if %>
(402) 220-9379 -- replay through 10/30

GENZYME <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZ)") else Response.Write("(Nasdaq: GENZ)") end if %> and GENZYME TRANSGENICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GZTC)") else Response.Write("(Nasdaq: GZTC)") end if %>
(800) 633-8284 (code: 3265950) -- replay through 10/30
(303) 248-1201 (code: 3265950) -- replay number for international callers

FORCENERGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FEN)") else Response.Write("(NYSE: FEN)") end if %>
(800) 411-5828 (code: 362389) -- replay through 11/3
(612) 321-9419 (code: 362389) -- replay for international callers

BUSINESS OBJECTS ADS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BOBJY)") else Response.Write("(Nasdaq: BOBJY)") end if %>
(800) 633-8284 (code: 3195088) -- replay through 11/3

MORROW SNOWBOARDS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MRRW)") else Response.Write("(Nasdaq: MRRW)") end if %>
(402) 220-4249 -- replay through 11/4

THIS WEEK'S CONFERENCE CALL SYNOPSES

ATLAS AIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATLS)") else Response.Write("(Nasdaq: ATLS)") end if %> Call
PRIME MEDICAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PMSI)") else Response.Write("(Nasdaq: PMSI)") end if %> Call

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Every day, News writers Dale Wettlaufer and Randy Befumo engage in an impromptu discussion about the stories they find most compelling from the day's news, adding color, fresh commentary and the occasional wisecrack for your listening enjoyment. Check it all out in the Motley Fool's Evening Report on RealAudio Produced by partner AudioNet.

Randy Befumo (TMF Templr), Fool One
Dale Wettlaufer (TMF Ralegh), Fool Two
Alex Schay (TMF Nexus6), Fool Three
Contributing Writers

Brian Bauer (TMF Hoops), Fool Four
Julia Wilson (TMF Delete), Fool Five
Editing