FOOL PLATE SPECIAL

Micron Downgraded

Micron Technology <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MU)") else Response.Write("(NYSE: MU)") end if %> received a downgrade from Tom Kurlak of Merrill Lynch today, who took the stock down to a "long-term neutral" rating from an "accumulate" rating. Kurlak's concerns center on the rapid transition of the Asian dynamic random access memory (DRAM) manufacturers to 64 meg chips from the current 16 MEG standard.

Micron's story is a torrid one, replete with boardroom battles, threatened executive walk-outs and major capital expansion plans called off in mid-stream. The company's claim to fame has been its ability to product 4 meg and 16 meg chips at the lowest cost in the industry. Despite its relatively small size and the fact that it ranks as only the 10th largest DRAM producer the world, the company has for months been championed by many U.S. analysts as a pure-play on the DRAM market.

Although Micron has managed to reduce its cost of manufacture by 20% or so annually over the past few years, the recent 6% to 80% drops in the price of 4 meg and 16 meg chips coupled with the firm's slow move toward 64 meg and higher chips may have caused significant long term troubles for the company. A negative article in the Evening News back a few weeks ago when the stock was at $38 elicited some irate responses from shareholders.

UPGRADES & DOWNGRADES

EARNINGS SURPRISES

Computer Associates <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CA)") else Response.Write("(NYSE: CA)") end if %> predicted its next fiscal quarter would be difficult and lost $5 1/4 to $75 7/8 for its troubles.

Watkins-Johnson <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WJ)") else Response.Write("(NYSE: WJ)") end if %> cited lower semiconductor equipment orders this morning when it said it would miss analyst projections for the second quarter and the full year, dropping the shares $3 7/8 to $30 7/8.

It was only a matter of time before Apple Computer's problems bled into Global Village's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: GVIL)") else Response.Write("(NASDAQ: GVIL)") end if %> business. The company, which mainly revolves around Apple modems and networking, dropped $4 3/4 to $10 1/2 today after it forecast a loss for the next quarter as opposed to analyst estimates of a $0.23 EPS profit.

Telxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: TLXN)") else Response.Write("(NASDAQ: TLXN)") end if %> got whacked for $7 3/8 to $19 today when it reported estimates that came in five cents below estimates after taking out an $0.11 EPS one-time benefit.

ODDS & ENDS

There is really no explanation that we can find for Optical Cable 's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: OCCF)") else Response.Write("(NASDAQ: OCCF)") end if %> $11 to $70 rise today, although the recent initial public offering (IPO) made a similar jump yesterday.

Republic Environmental <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: RESI)") else Response.Write("(NASDAQ: RESI)") end if %> rose $3 3/4 to $24 today, moving big for the third day in a row after news that the company would merge with another company's insurance unit and Wayne Huizenga would pour more than $5 million into it.

Shares of SyQuest <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: SQYT)") else Response.Write("(NASDAQ: SQYT)") end if %> continue to surge ahead, rising $1 to $12 5/8 again on speculation that the company could be the "next Iomega" -- despite some rather significant red marks on its balance sheet.

FTP Software <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FTPS)") else Response.Write("(NASDAQ: FTPS)") end if %> amended its deal with FireFox Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FFOX)") else Response.Write("(NASDAQ: FFOX)") end if %>, getting the provider of Netware TCP-IP stacking software for less money now. FTP Software slid $1 3/4 to $11 7/8 on the news while FireFox got slammed for $2 to $9 1/4.

Excel Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ECI)") else Response.Write("(NYSE: ECI)") end if %> continues its volatile behavior, up $1 3/4 to $38 1/2. The company came public only 12 days ago at $15 a share and has been exploding ever since.

Cabletron Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CS)") else Response.Write("(NYSE: CS)") end if %> is buying Network Express <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: NETK)") else Response.Write("(NASDAQ: NETK)") end if %> in what looks to be a take-*under*, as shareholders of Network will only get 0.1388 shares of Cabletron in the exchange. Network dropped $1 7/8 to $10 3/8.

Forte Software <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FRTE)") else Response.Write("(NASDAQ: FRTE)") end if %> dropped $6 to $75 3/4 after it announced a 1.25 million share secondary offering which investors apparently felt would be dilutive.

ACT Networks <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ANET)") else Response.Write("(NASDAQ: ANET)") end if %> slid $3 1/4 to $40 after it filed to offer 3 million share, with 1.49 million coming from current insiders of the company.

Randy Befumo (MF Templar), a Fool
Selena Maranjian (MF Selena), another Fool