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FOOL PLATE SPECIAL

Same-Store Retail Numbers

According to data from TeleCheck Services, Inc., retailers had a better August than July this year. Fools with remarkable memories will recall that sales slumped 2.4% last month, compared with last July. August, however, was rosier, with same-store sales up 3.1% over the year-ago August. Why? Well, several explanations have surfaced in the press. For one, the Olympics is over. July's less-than-impressive performance was attributed, in part, to people staying away from the malls and preferring to watch recap after recap of Kerri Strug's heroic gymnastic vault. August's boost is also supposedly due to a back-to-school burst. although this Fool is scratching her head wondering -- weren't kids preparing to go back to school last August, too?

The retail industry is famous for blaming the weather for all its ups and downs. Often the calendar is called into play, as well. Dr. William Ford, TeleCheck's senior economic adviser, noted that, "Calendar factors including one extra Saturday this August than last and an earlier Labor Day weekend, also benefited retailers. This contrasts with July, which would have had stronger same store sales if not for a calendar anomaly that gave the month only eight weekend days compared to ten last year." At any rate, the numbers are in, and it's a mixed bag for retailers.

Faring well today after reporting their August same-store numbers are:

-- ANNTAYLOR <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ANN)") else Response.Write("(NYSE: ANN)") end if %>, up $3/4 to $15 3/4 on a 4.1% increase.
-- SHOPKO (NYSE SKO), jumping $7/8 to $16 1/4 on an 11.6% rise.
-- MAY DEPT. STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MAY)") else Response.Write("(NYSE: MAY)") end if %>, up $1 1/4 to $46 1/4 on a 7/9% increase.
-- BON-TON STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: BONT)") else Response.Write("(NASDAQ: BONT)") end if %>, advancing $1/2 to $6 1/4 on a 7.3% increase.

Faring less well are:

-- GYMBOREE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: GYMB)") else Response.Write("(NASDAQ: GYMB)") end if %>, off $1 13/16 to $29 on a 2% increase.
-- THE GAP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GPS)") else Response.Write("(NYSE: GPS)") end if %>, plunging $4 3/4 to $29 1/8 on flat sales.
-- MOTHERS WORK <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MWRK)") else Response.Write("(NASDAQ: MWRK)") end if %> plummeted $4 to $16 on a strong 14.7% increase, but wanred that it won't meet fourth quarter expectations.
-- INTIMATE BRANDS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBI)") else Response.Write("(NYSE: IBI)") end if %>, off $1 3/4 to $18 3/8 on a 2.0% rise.

UPS

C-FON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CFON)") else Response.Write("(NASDAQ: CFON)") end if %> shares skyrocketed $1 1/2 to $5 after the company announced that its quarterly desktop videoconferencing product sales have more than doubled from the year-ago quarter.

SCICLONE PHARMACEUTICALS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: SCLN)") else Response.Write("(NASDAQ: SCLN)") end if %> shares surged $1 5/16 to $10 5/8 after receiving a license to market Zadaxin (R) thymosin alpha 1, a chronic hepatitis B treatment, in China.

CAMPBELL SOUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPB)") else Response.Write("(NYSE: CPB)") end if %> is mmm... mmm... good to its shareholders this morning, beating analyst fourth quarter estimates by $0.04 and unveiling a $2.5 billion stock buyback program. Shares rose $4 1/2 to $72.

Started by Smith Barney with a "buy" rating today is database management system developer INFORMIX <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IFMX)") else Response.Write("(NASDAQ: IFMX)") end if %>, popping up $3/4 to $23 7/8.

In the wake of the STAPLES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: SPLS)") else Response.Write("(NASDAQ: SPLS)") end if %> / OFFICE DEPOT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ODP)") else Response.Write("(NYSE: ODP)") end if %> merger, Morgan Stanley initiated coverage of US OFFICE PRODUCTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: OFIS)") else Response.Write("(NASDAQ: OFIS)") end if %> with a "strong buy" rating, sending shares up $1 3/8 to $27 1/8.

FEI CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FEIC)") else Response.Write("(NASDAQ: FEIC)") end if %> shares advanced $2 3/8 to $12 5/8 after the company agreed to purchase Philips Electron Optics BV, a unit of PHILIPS ELECTRONICS NV <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PHG)") else Response.Write("(NYSE: PHG)") end if %> in a stock swap deal.

Shares of CAMBRIDGE HEART <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CAMH)") else Response.Write("(NASDAQ: CAMH)") end if %> pumped up $15/16 to $8 15/16 after Goldman Sachs initiated coverage with a "buy" rating. Bear Stearns did the same yesterday, rating it "attractive."

DOWNS

ZILOG (NYSE ZLG) crashed and burned this morning, off $8 1/2 to $15 3/8 after warning that instead of earning the estimated $0.45 per share in its third quarter, it is likely to earn between $0.05 and $0.15. The integrated circuit manufacturer cited industry softness and was cut from "buy" to "neutral" by Alex. Brown.

Bar-code reader manufacturer PERCON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: PRCN)") else Response.Write("(NASDAQ: PRCN)") end if %> plunged $3 3/4 to $8 1/2 today, after warning that its third and fourth quarter numbers will disappoint. It has experienced slowing sales.

Power semiconductor supplier INTERNATIONAL RECTIFIER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IRF)") else Response.Write("(NYSE: IRF)") end if %> gave up $3 to $15 after Smith Barney downgraded the firm from "buy" to "neutral."

MACROMEDIA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MACR)") else Response.Write("(NASDAQ: MACR)") end if %> shares fell $3 11/16 to $19 1/8, downgraded from "buy" to "hold" by UBS Securities and from "outperform" to "neutral" by Morgan Stanley's Mary Meeker.

POLARIS INDUSTRIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PII)") else Response.Write("(NYSE: PII)") end if %>, maker of snowmobiles, water-mobiles, and all-terrain vehicles, reported an 8% decrease in personal watercraft sales so far this year, coupled with weak demand and strong supply. Shares sank $4 1/4 to $24.

Disk-drive assembly maker HUTCHINSON TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: HTCH)") else Response.Write("(NASDAQ: HTCH)") end if %> slumped $4 to $35 after warning that fourth quarter-to-date net earnings appear to be coming in at break-even levels. The company was expected to earn $0.85 in the fourth quarter.

PEOPLESOFT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: PSFT)") else Response.Write("(NASDAQ: PSFT)") end if %> retreated $2 1/2 to $73 1/4 after agreeing to acquire Red Pepper Software for stock.

FOOL PROTFOLIO STOCKS

FOOL PORTFOLIO                  BORING PORTFOLIO
AMER down $1/8 to $29 7/8       BGP  down $1/4 to $31 1/2  
CHV  down $1/4 to $59 3/8       CSL  up $1/4 to $51   
COMS  down $1/2 to $47 5/8      CSCO  down $1/2 to 53 7/8  
GM  unch. at $48 7/8            GNT  unch. at $34 3/4
IOMG down $1/4 to $14 3/4       OXHP  down $1/2 to $44 5/8
KLAC  down $3/8 to $19          PMSI  up $1/8 to $11 3/4
MDRX  down $1/2 to $38 3/4      SHAW  up $1/4 to $32 3/4
MMM  down $1/4 to $67 3/4       SPY  down $1/8 to $65 11/16
T  up $1/8 to $52 5/8           TXI  down $1/4 to $66 3/8