CONFERENCE CALLS

None

FOOL PLATE SPECIAL

Iraq, Oil and Airlines

Early Tuesday, the United States launched 27 cruise missiles at air-defense installations located in southern Iraq. The executive order for this attack was penned by President Clinton in response to an Iraqi incursion into a United Nations-designated safe haven for the country's Kurdish minority. Defense Secretary William Perry stressed that Iraq had been warned all weekend not to use their troops to attack the safe haven and saw today's action in part as retribution and in part as preemptive action against any further threats to Iraq's neighbors. The Clinton administration also extended the "no-fly" zone to cover all of southern Iraq and has postponed the previously-announced "oil-for-food" deal.

The oil patch took this news well, with integrated oil producers and oilfield services companies up across the board. Whether a gas producer like NUEVO ENERGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NEV)") else Response.Write("(NYSE: NEV)") end if %> or a massive international giant like ATLANTIC RICHFIELD <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ARC)") else Response.Write("(NYSE: ARC)") end if %>, these stocks were moving up this morning. The Dow's oil triumvirate -- EXXON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: XON)") else Response.Write("(NYSE: XON)") end if %>, TEXACO <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TX)") else Response.Write("(NYSE: TX)") end if %> and CHEVRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CHV)") else Response.Write("(NYSE: CHV)") end if %> -- brought the Dow off of its lows this morning. ROYAL DUTCH PETROLEUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RD)") else Response.Write("(NYSE: RD)") end if %>, SCHLUMBERGER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %>, KERR MCGEE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KMG)") else Response.Write("(NYSE: KMG)") end if %> and HALIBURTON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HAL)") else Response.Write("(NYSE: HAL)") end if %> were among the many oil-related companies notching higher today. With the chances of all that Iraqi supply evaporating, the pricing environment for oil over the next few months looks a lot better than previously anticipated.

Airline stocks were not maintaining altitude, however. The prospects of higher oil prices combined with the threat of international terrorism is causing most large international airlines to fly a little lower today. KLM ROYAL DUTCH <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KLM)") else Response.Write("(NYSE: KLM)") end if %> and BRITISH AIRWAYS PLC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAB)") else Response.Write("(NYSE: BAB)") end if %> were among the international flyers downed today. And AMR CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMR)") else Response.Write("(NYSE: AMR)") end if %>, DELTA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DAL)") else Response.Write("(NYSE: DAL)") end if %> and UAL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UAL)") else Response.Write("(NYSE: UAL)") end if %> were busy pulling the Dow Jones Transportation average lower today even as the oil stocks were saving the Industrials.

UPS

Value investor Eric Ryback sounded off in this weekend's issue of Barron's, mentioning that his firm owned 10% of wireless communications provider METRICOM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MCOM)") else Response.Write("(NASDAQ: MCOM)") end if %>. His interest? Wireless modems. Shares rose $1 7/8 to $13 1/4 this morning.

ARCADIAN CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ACA)") else Response.Write("(NYSE: ACA)") end if %> surged $2 1/2 to $24 1/2 as the fertilizer producer signed a deal to be acquired by its competitor POTASH CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: POT)") else Response.Write("(NYSE: POT)") end if %> for $1.18 billion in cash and stock, plus the assumption of debt.

LANDMARK GRAPHICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: LMRK)") else Response.Write("(NASDAQ: LMRK)") end if %> popped up $3/4 to $30 1/2 as the supplier of integrated exploration and production information systems neared its previously-announced merger date with oilfield services giant HALIBURTON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HAL)") else Response.Write("(NYSE: HAL)") end if %>.

DOWNS

Second-tier semiconductor capital supplier ADVANCED ENERGY INDUSTRIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: AEIS)") else Response.Write("(NASDAQ: AEIS)") end if %> dropped $1 3/8 to $5 5/8 this morning when the firm announced a 7% cut in its workforce and a third quarter restructuring charge.

PREMIERE TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: PTEK)") else Response.Write("(NASDAQ: PTEK)") end if %> traded down $2 to $19 1/4 today, continuing to slide from its 52-week high of about $50 set all the way back in May. The information and telecommunications services provider has been hammered lately.

Shares of ROTECH MEDICAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ROTC)") else Response.Write("(NASDAQ: ROTC)") end if %> slumped $1 3/4 to $14 1/2 after a Barron's article speculating lower Medicare reimbursement for oxygen therapy would impact profits. AMERICAN HOME PATIENT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: AHOM)") else Response.Write("(NASDAQ: AHOM)") end if %> dropped $1 1/2 to $23, APRIA HEALTHCARE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AHG)") else Response.Write("(NYSE: AHG)") end if %> was off $3/4 to $24 1/2 and LINCARE HOLDINGS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: LNCR)") else Response.Write("(NASDAQ: LNCR)") end if %> slid $2 1/16 to $35 1/4.

VAUGHN COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: VGHN)") else Response.Write("(NASDAQ: VGHN)") end if %> continued to drop $1/2 to $11 3/4 today, missing one analyst's estimates by two cents after reporting earnings on Friday. Vaughn is a high-volume videotape duplicator and also distributes leather goods.

Shares of South Korean stocks slumped today in the aftermath of the Iraqi missile attack. KOREA MOBILE TELECOM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SKM)") else Response.Write("(NYSE: SKM)") end if %> fell $1 to $15, KOREA ELECTRIC POWER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KEP)") else Response.Write("(NYSE: KEP)") end if %> dropped $1 to $20 1/4 and POHANG IRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PKX)") else Response.Write("(NYSE: PKX)") end if %> gave back $1 1/8 to $20 3/4.

FOOL PROTFOLIO STOCKS

FOOL PORTFOLIO                  BORING PORTFOLIO
AMER  unch. at $30 1/4         BGP  down $1/2 to $31 7/8
CHV   up $7/8 to $59 3/4       CSL  down $1/4 to $51 1/4
COMS  down $1/2 to $46 1/4     CSCO down $3/8 to $52 3/8
GM    down $1 to $48 5/8       GNT  down $5/8 to $34 1/8
IOMG  down $1/4 to $15 1/4     OXHP down $1 1/8 to $44 5/8 
KLAC  down $1/8 to $19 5/8     PMSI down $1/2 to $11 3/4
MDRX  down $3/8 to $40 1/2     SHAW down $3/4 to $32 1/8 
MMM   down $5/8 to $68 1/8     SPY  down $7/16 to $64 7/8
T     down $5/8 to $51 7/8     TXI  down $3/8 to $64 3/4