The Week in Review -- June 6, 1998

Notes from a Fool
by Jerry Thomas ([email protected])

You're looking at a new feature here at The Motley Fool. If you'll cast your gaze an inch or so above this text, you'll see that it says "Notes from a Fool" up there. The Fool in question is me, Cheeze, and the notes are mine, but the idea here is that each week I'll appear in this space and highlight some of our best features of the previous week. When the Fools at HQ approached me to do this project, I was told that the plan was to make this feature light, cheerful, humorous, and conversational. Cool, I figured. At last I can put my hard-won skills at goofing off to good use. So, down to business...

There were many events that could have impacted the markets this week. On the one hand, we had the anxieties unleashed by the newly announced nuclear capabilities of both Pakistan and India. On the other hand, we had the break-up of the Spice Girls. These developments, apparently, were unrelated, but as distressing as they are to all of us, it must be admitted that things could be worse. It could be the Spice Girls with nuclear first-strike capability. Imagine the mayhem that might have ensued were they to target, say, the Bay City Rollers.

Fortunately, these threats didn't seem to trouble the markets. Instead, investors were more concerned with chip delays at Intel and interest rate fluctuations around the world. Tech stocks sold off heavily early in the week on the Intel news, but a Friday report from the Labor Department showing strong employment stats was greeted with a rally, capping a see-saw week for the markets.

Friday also saw the unveiling of an important feature in Fooldom: our new Planning a Foolish Retirement area. Now, I haven't given my own retirement much thought, but I have to admit that the thought of spending my declining years wallowing in a jacuzzi filled with high-denomination Federal Reserve Notes is definitely an attractive prospect. David Braze (TMF Pixy), a specialist in retirement planning, has assembled enough information for all of us to get started right away.

Mark your calendars: A week from Saturday, David and Tom Gardner will step up to the microphone for the first Motley Fool Radio Show. This is an important development in Fooldom. Our crack team of Foolish Media Consultants made careful examination of the Gardner Boys' telegenic potentialities, and, after much deliberation, determined that they'd look just great on the radio. We're very proud of the boys, and some of us even have confidence that, given enough time, they might even amount to something some day. The radio show, at first, will be heard only in Atlanta and Los Angeles, and will roll out nationwide this fall.

Some other items worth checking out as you relax this weekend:

TMFs Bogey and Edible have been clashing all week on our Dueling Fools page over the concept of Averaging Down, which is the practice of adding to a stock position when it declines significantly in price. David Forrest (Bogey) says Averaging Down is "one of the most misguided pieces of advice Wall Street has ever dispensed." Meanwhile Rick Munarriz (Edible) believes that under the right circumstances Averaging Down can be a very smart move. Who's right?

Edible has had a busy pen this week. You can find more of his blithe scribblings in his analysis of Premier Laser Systems, a company that makes laser equipment for use in dental surgery. The company's share price has taken a steep dive of late, which is why it was the subject of last Tuesday's Daily Trouble. Rick tells a sad tale of misplaced purchasing orders, restated earnings, and unmet expectations.

Fools Yi-Hsin Chang (TMF Puck) and Brian Graney (TMF Panic) interviewed 3Dfx Interactive CEO Greg Ballard this week. The transcript of this conversation is primary research on one of the most closely-followed companies in Fooldom.

Reader David Innes contributed a post to our Microsoft board at our website which became Wednesday's Post of the Day. It's a fascinating recounting of the relationship between Apple and Microsoft, going back to the days when Bill Gates hadn't even made his first billion.

Tom Gardner's Tuesday Cash-King Report discusses plans for the next stock purchase in that portfolio, and gives you a chance to help make the decision. The response has so far been outstanding, as close to 100 readers have contributed suggestions for stocks that fit the rigorous Cash-King criteria. In fact, that entire week's series is worth checking out if you're interested in the Cash-King stock selection process.

President Ken Brimmer and CFO Mark Robinow of the Rainforest Cafe appeared in a live chat room event on our AOL site, fielding questions from interested Fools. A transcript is now online.

One of my favorite writers in Fooldom is Robert Sheard (TMF Sheard), and his Foolish Four and Foolish Workshop reports are worth all the time you wish to give them. This week, I'd like to give special note to Thursday's Foolish Four Report, a lighthearted look at the celebrated numerical series of Leonardo Fibonacci, and its mysterious relation to the Foolish Four. Coincidence? You be the judge!

Finally, if you're a teacher, you might enjoy taking part in our Fools in Schools Survey. We're gathering information about financial education in our schools, and the more we know, the better our position will be in our efforts to teach young people about managing their money.

Those are the Notes for this week. Until next time...

Have fun, Fools!

Cheeze

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