FOOL PLATE SPECIAL
An Investment Opinion by MF Templar

Centennial Saga Continues

Shares of CENTENNIAL TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CTN)") else Response.Write("(NYSE: CTN)") end if %> remained locked in place at the open today, held in early trading. Although the company released pretty shocking news that it had fired its chief executive, what will probably cause Centennial to implode are the questions that today's events raise about previously stated earnings. Centennial stated this morning that it is currently probing prior financial statements to determine their veracity, focusing in particular on the second quarter's reported earnings. The company gave no indication of what consequence the probe could have, a fact that will probably do absolutely nothing to calm investor nerves.

The company reported this morning that it has removed Emanuel Pinez as chairman, chief executive and secretary, unceremoniously terminating his employment. Pinez is not the only one who has less to do at Centennial. James M. Murphy has been relieved of his duties as chief financial officer "until further notice," although he gets to assist the company in the inquiry into whether prior reported financial statements are accurate. The inquiry is being led by a special committee formed by four members of the board of directors. The committee will also begin to search immediately for a new chief executive and an interim chief financial officer, implying that although Murphy has been temporarily relieved of duty, the reality is he probably no longer has a job.

Centennial surged to fame in 1996 by being the biggest percentage gainer on the New York Stock Exchange, a favorite of both short-term traders and momentum-style investors for its fast-growing earnings and its tendency to beat earnings estimates. The company began to slide on January 30th after reporting second quarter earnings that showed its move away from laptop PCMCIA cards into contract manufacturing would cause gross margins to plummet (as reported then in the Evening News). If falling margins scared investors away two weeks ago, there is no telling what havoc will occur now that it appears the financial statements upon which investors have been basing their decisions are completely corrupt. MERCURY FINANCE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MFN)") else Response.Write("(NYSE: MFN)") end if %> is the last high-profile company to fall apart due to account irregularities.

UPS

INNOTECH INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IIII)") else Response.Write("(Nasdaq: IIII)") end if %> jumped $4 3/4 to $13 5/8 after the eyeglass lens casting equipment company agreed to be acquired by JOHNSON & JOHNSON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JNJ)") else Response.Write("(NYSE: JNJ)") end if %> for $13.75 per share in cash. Innotech came public in March 1996.

Medical equipment renter UNIVERSAL HOSPITAL SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: UHOS)") else Response.Write("(Nasdaq: UHOS)") end if %> gained $4 1/2 to $16 7/8 on agreeing to merge with MEDIQ INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: MED)") else Response.Write("(AMEX: MED)") end if %> in a deal valuing Universal at $17.50 per share plus assumption of debt.

AMISYS MANAGED CARE SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMCS)") else Response.Write("(Nasdaq: AMCS)") end if %> popped up $4 3/8 to $20 1/4 after agreeing to a stock swap with healthcare software firm HBO & CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HBOC)") else Response.Write("(Nasdaq: HBOC)") end if %> valuing Amisys at 0.35 shares of HBO stock, which closed last night at $62 7/8.

Internet organizer EXCITE INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: XCIT)") else Response.Write("(Nasdaq: XCIT)") end if %> gained $1 15/16 to $17 while YAHOO <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: YHOO)") else Response.Write("(Nasdaq: YHOO)") end if %> rose $1 3/8 to $30 1/2 as the New York Times reported in today's business section that the companies are building successful brands and that "investors have reason for optimism."

MICRO WAREHOUSE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MWHS)") else Response.Write("(Nasdaq: MWHS)") end if %> moved up $1 3/4 to $13 3/8 after the computer catalog retailer reported Q4 EPS of $0.17, beating estimates by 31%.

Spinal implants company SPINE-TECH <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SPYN)") else Response.Write("(Nasdaq: SPYN)") end if %> rose $1 3/4 to $24 3/8 after Hambrecht & Quist raised its rating on the company to "strong buy" from "buy" on the belief that a spinal fusion product introduction is proceeding well.

ADAPTEC INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADPT)") else Response.Write("(Nasdaq: ADPT)") end if %> bounced back $2 7/8 to $38 following yesterday's implosion at 3COM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COMS)") else Response.Write("(Nasdaq: COMS)") end if %>. CISCO <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> also came back $2 1/2 to $60 1/2, but ASCEND <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %> shed another $3 7/8 to $58 3/4 this morning, even though its business model is manifestly different than 3Com's.

Computer telephony products maker DIALOGIC CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DLGC)") else Response.Write("(Nasdaq: DLGC)") end if %> gained $3 to $32 on reporting Q4 earnings per share (EPS) of $0.34, smoothing past estimates of $0.33.

ENERGY VENTURES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EVI)") else Response.Write("(NYSE: EVI)") end if %> moved up $2 1/2 to $52 3/4 after the oilfield equipment maker reported Q4 EPS from continuing operations of $0.47, besting the mean estimate of $0.46.

CONCEPTS DIRECT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CDIR)") else Response.Write("(Nasdaq: CDIR)") end if %> rose $4 1/4 to $24 1/2 after the maker of gift items reported Q4 EPS of $0.75 on a 28% increase in sales.

Spinal implant maker DANNINGER MEDICAL TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DANN)") else Response.Write("(Nasdaq: DANN)") end if %> picked up $1 1/4 to $9 after the company pre-announced Q4 EPS of $0.16 on record sales, which would crush the lone estimate of $0.11 per share.

DOWNS

BONDED MOTORS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BMTR)") else Response.Write("(Nasdaq: BMTR)") end if %> fell $1 3/16 to $9 after the automobile engine manufacturer undershot Q4 EPS estimates of $0.16 in reporting results of $0.11 per share.

Uninterruptible power supply manufacturer AMERICAN POWER CONVERSION <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: APCC)") else Response.Write("(Nasdaq: APCC)") end if %> dropped $4 3/8 to $24 1/8 even though the company reported a 77% increase in Q4 EPS of $0.32, beating estimates of $0.28.

RADISYS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RSYS)") else Response.Write("(Nasdaq: RSYS)") end if %> fell $6 1/8 to $33 1/2 on no news.

Fluid handling equipment company DURIRON INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DURI)") else Response.Write("(Nasdaq: DURI)") end if %> lost $1 1/4 to $22 9/16 after reporting Q4 EPS of $0.53 and being downgraded by Smith Barney to "neutral" from "outperform."

GALOOB TOYS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GAL)") else Response.Write("(NYSE: GAL)") end if %> dropped $2 1/2 to $14 5/8 on reporting Q4 EPS of $0.74, missing estimates of $0.76, and down two cents from last year.

SOLA INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SOL)") else Response.Write("(NYSE: SOL)") end if %> continued $1 7/8 lower to $26 after the eyeglasses lens maker announced late Friday that Q4 earnings will come in lower than expected.

Cable TV box and communications equipment maker GENERAL INSTRUMENT CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GIC)") else Response.Write("(NYSE: GIC)") end if %> fell $1 1/4 to $23 3/8 after reporting Q4 EPS of $0.30 before charges, meeting First Call estimates.

CONFERENCE CALLS

RAINFOREST CAFE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RAIN)") else Response.Write("(Nasdaq: RAIN)") end if %>
(402) 222-9929 -- through February 11

CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %>
(800) 633-8284 in USA
(303) 446-5399 elsewhere
passcode: 2338711#

ANN TAYLOR STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ANN)") else Response.Write("(NYSE: ANN)") end if %>
(re: January sales)
(402) 351-9977 -- replay through 5:30 PM EST on 2/14

ALLIED SIGNAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ALD)") else Response.Write("(NYSE: ALD)") end if %>
(800) 633-8284 (reservation # 2216671)
replay avail. thru 2/13

02/11/97 (Tuesday)
APPLIED MATERIALS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMAT)") else Response.Write("(Nasdaq: AMAT)") end if %>
(800) 642-1687 (access code: 221082) -- replay after 5:30

FOOL PORTFOLIO STOCKS

FOOL PORTFOLIO                 BORING PORTFOLIO
ATCT up $1/2 at $7 1/8         BGP up $7/8 at $44 1/8
AOL down $1/2 at $34 1/4       CSL up $1/4 at $32 1/4
CHV up $1 3/8 at $66 1/2       CSCO up $2 1/2 at $60 1/2
COMS up $1 3/8 at $38 5/8      GNT up $1/4 at $39 7/8
GM up $1/8 at $56 1/2          ORCL down $1/4 at $39 7/8
IOM down $1/4 at $16 1/4       OXHP up $7/8 at $51 7/8
KLAC down $1/8 at $39 1/4      PMSI up $1/8 at $11 5/8
LU down $5/8 at $55 1/4        SLR down $7/8 at $54
MMM up $1/8 at $83 5/8         TDW up $1 at $42 1/4
NCR up $1/8 at $36 3/8
T down $1/4 at $38 3/4