DJIA:           8490.67  +32.89       (+0.39%) 
 S&P 500:        1048.67   +5.77       (+0.55%) 
 Nasdaq:         1777.11  +10.63       (+0.60%) 
 Value Line ndx   935.41   +7.34       (+0.79%) 
 30-Year Bond  102 15/32  -12/32   5.95% Yield 
 

HEROES

Energy services companies Halliburton Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HAL)") else Response.Write("(NYSE: HAL)") end if %> and Dresser Industries <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DI)") else Response.Write("(NYSE: DI)") end if %> struck oil after announcing that Halliburton will acquire Dresser in a deal valued at roughly $7.7 billion. Dresser shot up $6 1/16 to $44 1/2, while Halliburton gained $2 5/8 to $46 5/8. Dresser stockholders will get one share of Halliburton common stock for each Dresser share in the pooling-of-interests transaction. The marriage between the two Dallas-based companies will create the world's largest oil field services company with $16.3 billion in revenues. Under the leadership of former U.S. defense secretary Dick Cheney, Halliburton in recent years has expanded the range of services its offers and has spent about $1 billion acquiring companies with different niche specialties. In 1996, the company bought Landmark Graphics Corp., a company that makes software for seismic interpretations of petroleum reserviors. Last year, it purchased Numar Corp., which helped drillers evaluate subsurface rock formations in newly drilled wells using magnetic resonance imaging. Dresser brings to Halliburton strong engineering capabilities and drilling systems to complement Halliburton's strength in construction for the energy sector.

Financial software company SS&C Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SSNC)") else Response.Write("(Nasdaq: SSNC)") end if %> rocketed up $4 3/8 to $17 5 after yesterday reporting fourth quarter earnings of $0.12 per share (before charges) versus $0.02 in the year-earlier period. Including a one-time charge for purchased in-process research and development related to the acquisition of Mabel Systems BV, Q4 EPS came to $0.06. The First Call mean estimate was $0.11. Fourth quarter revenue increased 57% to $13.6 million from $8.7 million in Q4 1996. SS&C's recent acquisitions of Mabel Systems and Shepro Braun Systems adds new products to its line, including a Windows-based comprehensive trading and order management system and a portfolio management and accounting system designed for global investments. BT Alex. Brown upgraded its rating of SS&C to a "strong buy" from a "buy."

QUICK TAKES: News of the merger between Halliburton-Dresser drove up other oil and gas drilling companies today. Global Marine <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GLM)") else Response.Write("(NYSE: GLM)") end if %> added $1 5/8 to $23 5/8, R&B Falcon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FLC)") else Response.Write("(NYSE: FLC)") end if %> was lifted $1 to $27 1/4, Ensco International <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ESV)") else Response.Write("(NYSE: ESV)") end if %> tacked on $1 1/8 to $29, and Noble Drilling <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NE)") else Response.Write("(NYSE: NE)") end if %> moved up $1 11/16 to $28 15/16... Drilling equipment manufacturer and oilfield services company Baker Hughes <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BHI)") else Response.Write("(NYSE: BHI)") end if %> soared $3 7/8 to $40 5/8, diversified oilfield services provider Schlumberger <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %> jumped $2 1/4 to $75 7/8, BJ Services <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BJS)") else Response.Write("(NYSE: BJS)") end if %> gained $2 1/16 to $33 3/4, and drilling equipment manufacturer Varco International <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: VRC)") else Response.Write("(NYSE: VRC)") end if %> vaulted $2 1/8 to $24 3/8. Cooper Cameron Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RON)") else Response.Write("(NYSE: RON)") end if %> also moved up $4 3/4 to $55 5/8, and Bayard Drilling Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BDI)") else Response.Write("(NYSE: BDI)") end if %> rallied $1 1/16 to $12 13/16.

Oil and gas construction contractor Willbros Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WG)") else Response.Write("(NYSE: WG)") end if %> surged $1 3/4 to $16 1/4 after announcing that one of its subsidiaries has signed a letter of intent with a major oil company for construction of a large oil pipeline. The company expects revenues will exceed $150 million during the term of the project... Boeing <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BA)") else Response.Write("(NYSE: BA)") end if %> took off for $2 11/16 to $53 15/16 after the aerospace company announced that its commercial airplane group is proceeding at or ahead of a recovery plan announced last fall. Yesterday Boeing also announced plans to sell its single-engine commercial helicopter business to Bell Helicopter Textron of Fort Worth, Texas. Terms of the deal were not disclosed... Cigarette maker RJR Nabisco Holdings <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RN)") else Response.Write("(NYSE: RN)") end if %> was smokin', gaining $1 3/8 to $34 1/4 on news that U.S. Senator John McCain said it appears more likely that the Senate will pass the tobacco settlement. With the White House looking like it's on board with the agreement, Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %> also added $1 5/8 to $42 5/8.

Oil and gas properties developer Cross Timber Oil <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: XTO)") else Response.Write("(NYSE: XTO)") end if %> rose $1 7/16 to $16 5/8 after Standard & Poor's affirmed the company's single-'B' subordinated debt and preferred stock ratings and its double-'B'-minus corporate credit and bank loan ratings... Chemicals producer Detrex Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DTRX)") else Response.Write("(Nasdaq: DTRX)") end if %> jumped $3 to $14 1/4 after reporting fourth quarter earnings of $0.55 per share compared with $0.16 per share for the year-earlier period... Vista Medical Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VMTI)") else Response.Write("(Nasdaq: VMTI)") end if %> rallied $1 1/2 to $9 1/2 after Prudential Securities started coverage of the surgical instrument maker with a "buy" rating... Real estate developer AMREP Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AXR)") else Response.Write("(NYSE: AXR)") end if %> rose $9/16 to $8 13/16 after reporting third quarter earnings of $0.56 per share compared with $0.04 in last year's Q3.

Apple Orthodontix <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: AOI)") else Response.Write("(AMEX: AOI)") end if %> leapt $1 1/2 to $12 3/8 after reporting fourth quarter earnings of $0.07 per share compared to $0.05 per share posted in the third quarter. EPS met the First Call estimate of $0.07. The orthodontic practice management company began operating immediately after its IPO in May 1997 and, therefore, did not generate any revenue during Q4 1996... Computer-aided design software firm Autodesk <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADSK)") else Response.Write("(Nasdaq: ADSK)") end if %> gained $5 to $49 7/8 after yesterday reporting Q4 EPS of $0.60 on revenues of $182 million, up 58% and 362%, respectively, over last year. Analysts were expecting EPS of $0.52 to $0.59... Pure World <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PURW)") else Response.Write("(Nasdaq: PURW)") end if %>, which extracts the active ingredients from plants for inclusion in supplements, cosmetics, and foods, rose $1 1/4 to $8 1/4 after yesterday reporting year-end earnings of $0.29 versus $0.03 in the year before.

Coffee purveyor Starbucks Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SBUX)") else Response.Write("(Nasdaq: SBUX)") end if %> perked up $2 1/8 to $39 7/8 on reporting a 6% increase in same-store sales for the four-week period ended February 22... Veterinary biotech company Heska Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HSKA)") else Response.Write("(Nasdaq: HSKA)") end if %> climbed $2 1/8 to $12 after announcing that it has commenced a public offering of up to 5.75 million shares of its common stock at a price of $9.875 per share... Computer services provider Vestcom International <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VESC)") else Response.Write("(Nasdaq: VESC)") end if %> tacked on $1 to $9 3/8 after reporting pro forma Q4 EPS of $0.14 compared with $0.06 in Q4 1996. The First Call estimate was $0.13... Electronics for Imaging <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EFII)") else Response.Write("(Nasdaq: EFII)") end if %> added $1 1/2 to $22 1/2 after Piper Jaffray yesterday initiated coverage of the color print server software company with a "strong buy" rating.

Allergy and asthma drug company Dura Pharmaceuticals <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DURA)") else Response.Write("(Nasdaq: DURA)") end if %> recovered $2 7/16 to $26 3/8 from its sharp drop yesterday. Furman Selz started coverage of the company with a "buy" rating... Integrated circuits maker Altera Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ALTR)") else Response.Write("(Nasdaq: ALTR)") end if %> climbed $1 5/16 to $44 3/16 after Deutsche Morgan Grenfell raised its rating of the company to "buy" from "accumulate."

Telecommunications services provider McLeodUSA Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MCLD)") else Response.Write("(Nasdaq: MCLD)") end if %> advanced $4 to $37 1/2 after Jefferies & Co. started coverage of the telecommunications company yesterday with a "buy" rating... Wireless telecom infrastructure systems manufacturer P-Com Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PCMS)") else Response.Write("(Nasdaq: PCMS)") end if %> jumped $1 5/8 to $21 after announcing yesterday that it has entered into a purchasing agreement with a major European telecommunications equipment manufacturer and systems provider. As part of that agreement, P-Com has received an initial $4 million purchase order for its point-to-multipoint digital millimeter wave radio systems... Yahoo! Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: YHOO)") else Response.Write("(Nasdaq: YHOO)") end if %> rounded up $6 13/16 to $68 1/8 after announcing that computer and software purveyor Egghead.com <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EGGS)") else Response.Write("(Nasdaq: EGGS)") end if %> has become a merchant on the Internet guide.

Jabil Circuit <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: JBIL)") else Response.Write("(Nasdaq: JBIL)") end if %> jumped $5 7/8 to $53 13/16 after the electronic contract manufacturer said at the BA Robertson Stephens technology conference that Asian problems are not affecting its business... Other contract manufacturers and circuit board companies also moved up on that bit of information, with Plexus <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PLXS)") else Response.Write("(Nasdaq: PLXS)") end if %> gaining $1 5/16 to $21 1/2, Hadco <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HDCO)") else Response.Write("(Nasdaq: HDCO)") end if %> picking up $2 17/32 to $53 1/2, Solectron <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLR)") else Response.Write("(NYSE: SLR)") end if %> adding $1 9/16 to $48 1/8, and SMART Modular <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SMOD)") else Response.Write("(Nasdaq: SMOD)") end if %> gaining $2 to $29 3/8.

GOATS

Touring bus manufacturer Metrotrans Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MTRN)") else Response.Write("(Nasdaq: MTRN)") end if %> fell $2 11/32 to $8 1/2 after reporting Q4 EPS of $0.10, short of the street estimate of $0.20. All kinds of bad things seemed to have crawled out of the woodwork at the Griffen, Georgia-based company during the fourth quarter. A smaller order backlog compressed the firm's production cycle, which in turn led to higher-than-anticipated manufacturing costs. Gross margins rose to 16.9% during the quarter from 15.5% a year ago, but came in below the levels recorded in fiscal Q2 and Q3 because of the shorter production cycle, higher labor and overhead costs, and expenses related to design changes for one of its existing models. Metrotrans' president and CEO said the firm has "a number of projects underway to provide growth and opportunity for the future," but added that it is having trouble capitalizing on the new products while maintaining steady profit margins for its existing business. Moreover, production and engineering delays will postpone deliveries of some of the new products until Q2, cutting into Q1 margins and revenues.

PC maker Compaq Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPQ)") else Response.Write("(NYSE: CPQ)") end if %> lost $1 1/8 to $32 7/8 after the company was downgraded by Salomon Smith Barney to "neutral" from "outperform." Apparently the analyst at Salomon thinks the company is carrying too much inventory, which could cause problems in the near term. Using Compaq's latest 10-K filing, one can determine that the costs of goods sold during Q4 was $5.3 billion, while the average quarterly inventory balance for the fourth quarter $1.79 billion. Based on these figures, the company turned its inventory 2.96 times during the quarter, or about once every 4.4 weeks. During the previous three quarters, Compaq turned its inventories an average of 2.55 times per quarter quarter, or about once every 5.2 weeks. So based on those numbers, the company's inventory controls are actually improving rather than getting worse. However, the company turned inventory 3.1 times in Q4 1996, or once every 4.18 weeks. Year-over-year, then, it does appear that inventory management worsened. If margins increased year-over-year with Compaq's new approach, though, the slowdown in inventory turns would be mitigated from a capital efficiency perspective.

QUICK CUTS: Troubled railroad operator Union Pacific Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UNP)") else Response.Write("(NYSE: UNP)") end if %> was derailed for $6 9/16 to $52 1/16 after announcing that it expects to report a first quarter loss and that it will issue equity to cover its cash shortfall, both of which have been brought about due to serious operational snafus. Standard & Poor's cut its rating on the railroad's commercial paper and debt, as well... Computer systems integrator and distributor Vanstar Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: VST)") else Response.Write("(NYSE: VST)") end if %> dropped $1 3/16 to $14 9/16 on reporting fiscal Q3 EPS of $0.24, which beat the First Call mean estimate of $0.22... Natural gas utility Pennsylvania Enterprises <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PNT)") else Response.Write("(NYSE: PNT)") end if %> slipped $1 15/16 to $23 5/16 after its PG Energy subsidiary filed to cut its gas prices. When combined with a previous reduction, the latest rate cut will drop the annual average residential heating bill for PG Energy customers by $84.

Diamond substitute manufacturer C3 Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CTHR)") else Response.Write("(Nasdaq: CTHR)") end if %> was nicked for $7/8 to $10 1/4 after reporting a fiscal 1997 loss of $1.73 per share. The company reported no sales, with revenues coming solely from interest income generated from cash raised in its recent initial public offering... Cheesecake Factory <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CAKE)") else Response.Write("(Nasdaq: CAKE)") end if %> lost $1 1/16 to $32 7/16 after Ladenburg Thalmann downgraded the restaurant operator to "long-term buy" from "buy"... Contract circuit board manufacturer ACT Manufacturing <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ACTM)") else Response.Write("(Nasdaq: ACTM)") end if %> sank $3 7/8 to $12 5/8 after it postponed the announcement of its Q4 and fiscal 1997 earnings because it had identified a "significant shortfall" in its inventory. A.G. Edwards downgraded the stock to "maintain" from "buy."

Hotel operator Riviera Holdings Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: RIV)") else Response.Write("(AMEX: RIV)") end if %> dropped $1 7/16 to $13 1/4 on concerns that it may not be able to close its merger with R&E Gaming Corp. by April 1 as planned after R&E requested information to determine whether or not Riviera is complying with certain aspects of the two companies' merger agreement... At Home Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATHM)") else Response.Write("(Nasdaq: ATHM)") end if %> dropped $2 3/8 to $32 1/8 after the coaxial cable-based Internet service provider said it was the victim of a large-scale "e-mail attack" last weekend, which slowed the amount of time it took to receive e-mail messages by 2 to 12 hours... Communications, networking, and data storage products maker Performance Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PTIX)") else Response.Write("(Nasdaq: PTIX)") end if %> fell $2 3/4 to $16 after reporting Q4 EPS of $0.18 compared with 0.14 a year ago, which was in line with the First Call mean estimate. The company's CEO said orders softened somewhat during the quarter, which caused the firm to begin 1998 with a lower-than-traditional order backlog.

Concrete construction contractor Meadow Valley Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MVCO)") else Response.Write("(Nasdaq: MVCO)") end if %> slid $9/16 to $5 9/16 after reporting Q4 EPS of $0.05, missing the I/B/E/S mean estimate of $0.14... Meridian Medical Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MTEC)") else Response.Write("(Nasdaq: MTEC)") end if %> lost $13/16 to $12 1/8 after the drug delivery company reported fiscal Q2 earnings of $0.16 per share, which was below the $0.18 per share expected by the single analyst surveyed by First Call... Senior citizen communities builder Del Webb Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WBB)") else Response.Write("(NYSE: WBB)") end if %> slumped $2 5/8 to $32 after revealing that it has been in discussions recently with other companies concerning a cash and stock merger deal valued in the low $30 per share area... Closed circuit TV systems manufacturer Vicon Industries <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: VII)") else Response.Write("(AMEX: VII)") end if %> shorted out for $5/8 to $10 7/8 after announcing it will sell a total of 1,575,000 shares in a public offering. Some 325,000 of the shares will be sold by three outside directors.

Toy retailer Toys R Us <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TOY)") else Response.Write("(NYSE: TOY)") end if %> dropped $1 to $26 after yesterday announcing lower-than-expected preliminary fiscal 1997 earnings. Lehman Brothers, Tucker Anthony, and Prudential Securities all downgraded the stock... Dutch management software firm Baan Company NV <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BAANF)") else Response.Write("(Nasdaq: BAANF)") end if %> fell $1 3/4 to $43 7/8 after being downgraded to "neutral" from "outperform" by Morgan Stanley... SONUS Pharmaceuticals <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SNUS)") else Response.Write("(Nasdaq: SNUS)") end if %> slipped $3 3/4 to $25 1/8 after the Food and Drug Administration asked the pharmaceutical company for more information before it can approve the firm's EchoGen ultrasound image enhancement agent.

FOOL ON THE HILL
An Investment Opinion
by Alex Schay

Dow Jones Out; Bloomberg In

A "mass market" for financial information didn't exist five years ago. However, in the intervening years the individual investor, with a voracious appetite for both news and investing analysis, has raised the stakes substantially for "traditional" news providers. To a large degree, these cravings originated with the distribution channel known as the "online medium," and were simultaneously refined by the multiplicity of offerings that have emerged over the last couple of years. All of the major players have since entered into the game.

International news and information powerhouse Reuters Holdings <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RTRSY)") else Response.Write("(Nasdaq: RTRSY)") end if %> teamed up with "we're much more than a search engine now" Yahoo! Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: YHOO)") else Response.Write("(Nasdaq: YHOO)") end if %> to provide significant news material for, among other things, Yahoo! Finance. Bloomberg L.P., which is privately owned by Michael Bloomberg and employs 700 reporters in 80 bureaus worldwide, has recently partnered with web-based content aggregator CNET Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CNWK)") else Response.Write("(Nasdaq: CNWK)") end if %> to provide material for the business area of Snap! Online. Finally, the premiere business news provider in the world, Dow Jones <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DJ)") else Response.Write("(NYSE: DJ)") end if %>, has (along with Reuters) partnered with the largest online service provider America Online <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %>. Well, that is, Dow Jones used to provide financial news for AOL. Today it was announced that Bloomberg L.P. will fill the gap on AOL left by Dow Jones after it left the online service in a huff at the end of last year. Sadly, the last vestiges of a Dow Jones presence on AOL are old heart-shaped bookmarks bearing names like "Top Stories/Dow Jones," which now, ironically, link to "Top Business Stories from Reuters."

Near the end of last year AOL decided to start charging its content providing tenants for their online occupancy. Whether Dow Jones bristled at having to suddenly pay for its "anchor tenant" slot after formerly having been paid by AOL for providing its news services, or whether Dow Jones simple engaged in a return on investment calculation that came up short is not clear. The end result is the same -- others, and not minor players, have in recent months made it clear that they think an investment in AOL is very much worth it. Although the terms of the Bloomberg partnership have not been revealed, other recent deals that AOL has engaged in are telling: Long-distance company Tele-Save Holdings <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TALK)") else Response.Write("(Nasdaq: TALK)") end if %> paid $100 million in an up-front payment last year (as well as additional fees) in exchange for heavy AOL promotion that yielded the firm 27,000 new customers in its first 24-hour ad blitz.

In addition, AOL signed a deal worth at least $50 million with shopping-club and consumer services behemoth CUC International, now a part of Cendant Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CD)") else Response.Write("(NYSE: CD)") end if %>. In recent weeks AOL squeezed $16 million out of Intuit Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTU)") else Response.Write("(Nasdaq: INTU)") end if %> in exchange for the software firm's provision of content for AOL's personal finance offerings (the total value of the deal is $30 million over three years). Incidentally, Intuit also has a revenue sharing arrangement with "we're also much more than a search engine" firm Excite <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: XCIT)") else Response.Write("(Nasdaq: XCIT)") end if %>. Many commentators have reported in a matter-of-fact manner that the reason for all these recent deals is that AOL has sought to reduce its reliance upon subscription revenues. Yes, that's true, but what has been lost in such dry recitations of the facts is that AOL has been able to effect such a change at all. To boldly demand dollars for slots that it formerly had to pay to fill (arguably for content that helped build its service in the first place) is a pretty strong statement about the "my way or the highway" clout (read: 22 million eyeballs) that AOL currently wields.

A brief look at some recent statistics reinforces the case. The market for financial information is exploding. On AOL alone, users look up 60 million stock quotes each day and track six million portfolios, which represents a growth rate of 70% in the last year. Online analysis group At-Plan will release a study tomorrow (as reported by The New York Times) showing that 8.4 million Internet users have self-directed investment portfolios worth more than $100,000. In addition, the company reports that its survey of 40,000 Internet users in the last quarter of 1997 showed that 12.1 million were actively using online finance sites.

The major financial news providers want to jump on all the platforms that are presently aggregating users. Netscape's <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NSCP)") else Response.Write("(Nasdaq: NSCP)") end if %> squandered opportunity, way back when it had the majority of online viewers visiting its home page, has been parlayed into gain by the Internet search engines. Yahoo! is increasingly being seen as a home base for investors cruising the net, which is one of the reasons why Reuters consummated the relationship with the popular website. Mediamark Research reported recently that in a "typical month" more than 25 million people use Yahoo!, and in some months up to 40 million people visit.

Bloomberg's desire to hedge its bet with CNET by also providing content for AOL is not out of character for the firm. In recent months Bloomberg has aggressively pursued an Internet presence (beyond its 17 million page views a month website) and has closed deals with Microsoft <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %> and @Home Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATHM)") else Response.Write("(Nasdaq: ATHM)") end if %>. The fact that 99% of the $1.3 billion in revenues that Bloomberg recently reported came from its proprietary terminal business has not dampened Bloomberg's desire to seek out a greater presence on the net. If this were a column of a different sort, the current trends would lead to the conclusion: Bloomberg In -- Dow Jones Out.

CONFERENCE CALLS

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ANOTHER FOOLISH THING

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Dale Wettlaufer (TMF Ralegh), Fool
Alex Schay (TMF Nexus6), Fool
Yi-Hsin Chang (TMF Puck), Fool
Brian Graney (TMF Panic), Fool
Contributing Writers

Brian Bauer (TMF Hoops), Fool
Editor