FOOL PLATE SPECIAL
An Investment Opinion by MF Templar

Freeport-Mac Goes to Borneo

BRE-X MINERALS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BXMNF)") else Response.Write("(Nasdaq: BXMNF)") end if %> plunged $2 1/2 to $15 1/4 after it was announced that the Calgary-based mining company would not receive a cash payment from FREEPORT-MCMORAN COPPER & GOLD <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FCX)") else Response.Write("(NYSE: FCX)") end if %>. The two companies are developing a large gold deposit in Busang, Indonesia through a joint venture, and many investors had anticipated that Freeport would give Bre-X an upfront cash payment in return for part of its participation. Freeport's dodge of the cash payment was worth $3 1/4 today, as its shares appreciated to $34 3/4.

When the Indonesian Minister of Mines and Energy Ida Bagus Sudjana stated Tuesday that the government had approved the rights of Freeport and Bre-X to develop the massive gold deposit in the East Kalimantan province on the island of Borneo, Bre-X investors had initially thought they had the green light. Bre-X had owned 90% of the rights to develop the field, and with Freeport stepping in with a large bank account, speculators smelled a little more than gold in the form of an upfront cash payment. Although typically the topsy-turvy world of gold mine trading is pretty dizzying for many investors, in a situation like Busang where there is a large, proven reserve of gold in the ground, development of this property is no different than development of an oil deposit or other natural resource.

The specifics of the joint venture released yesterday call for Bre-X to drop its stake to 45% from 90% without getting any cash in return. Instead, Freeport gets 15% of the mine for fronting $400 million, roughly 25% of what it will cost to develop the site. Two Indonesian companies grab 30%, while the Indonesian government, benevolent patriarch that it is, snags the remaining 10%. The reason Freeport makes sense as a development partner is because it already has a mine developed in Grasberg in the eastern Indonesian province of Irian Jaya. As a result, Freeport already has people, equipment and materials near the site that can help it to develop both mines at only a fraction of what it would cost a new entry. In the end, it is the cash Freeport will yield from converting the gold into earnings that will deliver returns to shareholders. With consensus estimates of $1.12 earnings per share for next year, investors apparently believe that this mine will be worth quite a bit to Freeport's bottom line in the not-to-distant future.

UPS

California savings & loan GREAT WESTERN FINANCIAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GWF)") else Response.Write("(NYSE: GWF)") end if %> jumped $8 7/8 to $43 1/8 after H.F. AHMANSON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AHM)") else Response.Write("(NYSE: AHM)") end if %> proposed a merger, which it says will be steadily accretive to earnings, valuing each Great Western share at 1.05 shares of Ahmanson stock.

AMERICAN FEDERAL BANK <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMFB)") else Response.Write("(Nasdaq: AMFB)") end if %> gained $5 1/4 to $26 3/4 after signing a definitive merger agreement with North Carolina bank CCB FINANCIAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CCB)") else Response.Write("(NYSE: CCB)") end if %> that values American Federal shares at $28.86. South Carolina-based FIRST FINANCIAL HOLDINGS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FFCH)") else Response.Write("(Nasdaq: FFCH)") end if %> gained $2 7/8 to $27 3/8 on the news.

GEORGIA GULF CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GGC)") else Response.Write("(NYSE: GGC)") end if %> gained $1 1/4 to $28 1/2 after Morgan Stanley raised its rating on the chemical company to "outperform."

Aerospace and telecom industry component supplier DUCOMMUN INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DCO)") else Response.Write("(NYSE: DCO)") end if %> rose $2 1/4 to $24 5/8 after reporting a 76% increase in Q4 earnings per share (EPS).

CONVERSE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CVE)") else Response.Write("(NYSE: CVE)") end if %> continued upward $2 3/4 to $25 1/4.

Soon-to-be WASTE MANAGEMENT INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMX)") else Response.Write("(NYSE: WMX)") end if %> gained $1 1/2 to $34 3/8 after President/CEO Phil Rooney resigned.

CEM CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CEMX)") else Response.Write("(Nasdaq: CEMX)") end if %> boomed ahead $1 3/4 to $10 3/8 after the microwave-based instrumentation company was featured in this weekend's Barron's as a tempting "value" play.

Following its recent slide, CHICAGO MINIATURE LAMP <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CHML)") else Response.Write("(Nasdaq: CHML)") end if %> was revived $7/8 to $21 1/2 by Friday's upgrade to "buy" from Raymond James Financial.

RENAISSANCE HOTEL GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RHG)") else Response.Write("(NYSE: RHG)") end if %> surged $4 5/8 to $29 3/4 after the hotel management company agreed to be acquired by MARRIOTT INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MAR)") else Response.Write("(NYSE: MAR)") end if %> for $1 billion. That leaves former merger partner DOUBLETREE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TREE)") else Response.Write("(Nasdaq: TREE)") end if %> on the outside, but its shares rose $2 7/8 to $43 1/2 since the company will receive a $15 million break-up fee.

Research labs and blood bank company DAXOR CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: DXR)") else Response.Write("(AMEX: DXR)") end if %> gained $1 7/16 to $11 1/8 after the New York State Supreme Court ruled in the company's favor in an action against the N.Y. State Health Department.

DOWNS

BOYDS WHEELS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BYDS)") else Response.Write("(Nasdaq: BYDS)") end if %> fell $3 3/4 to $10 1/2 after the company announced that it expects to record a 53% increase in yearly sales, but Q4 earnings will fall below estimates due to temporary acquisition-related inefficiencies.

ATLAS AIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATLS)") else Response.Write("(Nasdaq: ATLS)") end if %> descended $2 1/2 to $31 3/4 after the airfreight carrier reported Q4 EPS of $0.60, falling shy of estimates of $0.63.

Young women's accessories retailer CLAIRE'S STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CLE)") else Response.Write("(NYSE: CLE)") end if %> lost $1 1/2 to $14 1/2 on reporting Q4 EPS of $0.49, beating estimates of $0.48.

Boring Portfolio holding OXFORD HEALTH PLANS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: OXHP)") else Response.Write("(Nasdaq: OXHP)") end if %> slid $3 3/16 to $58 5/16 even though its Q4 EPS of $0.39 beat the mean First Call estimate of $0.36.

CONFERENCE CALLS

AT&T Capital
February 18, at 2 p.m. EST until midnight, February 25.
(800) 475-6701 code: 331034

RED ROOF INNS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RRI)") else Response.Write("(NYSE: RRI)") end if %>
(800) 633-8284 (reservation # 2369664)
replay avail until 5PM EST on 2/19

DOLLAR GENERAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DG)") else Response.Write("(NYSE: DG)") end if %>
(strategic plans for FY98)
(402) 220-1032 (code: 971032) -- replay

UNITED HEALTHCARE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UNH)") else Response.Write("(NYSE: UNH)") end if %>
replay available until 2/18
(800) 475-6701 (code: 323513)

360 (DEGREES) COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: XO)") else Response.Write("(NYSE: XO)") end if %>
(402) 220-3014 -- replay through 1/21

02/18/97 (Tuesday)
GENZYME CORP-TISSUE REPAIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZL)") else Response.Write("(Nasdaq: GENZL)") end if %>
(402) 220-6030 -- replay through 5PM on 2/25

02/18/97 (Tuesday)
HEWLETT-PACKARD <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HWP)") else Response.Write("(NYSE: HWP)") end if %>
(303) 446-5399 (reservation # 2348408) -- replay avail thru 2/25

FOOL PORTFOLIO STOCKS

FOOL PORTFOLIO                 BORING PORTFOLIO
ATCT down $1/16 at $6 3/4      BGP unch. at $42 7/8
AOL down $1/2 at $37 1/8       CSL down $1/4 at $35 1/8
CHV down $5/8 at $67 1/8       CSCO up $1 at $63 5/8
COMS unch. at $41 3/4          GNT up $3/8 at $41 1/2
GM down $1/8 at $58 5/8        ORCL down $7/8 at $40
IOM up $3/8 at $16 7/8         OXHP down $3 1/8 at $58 3/8
KLAC down $2 1/8 at $46        PMSI up $1/8 at $11 1/2
LU down $5/8 at $58 1/4        SLR down $1/2 at $55 5/8
MMM down $1/4 at $84 3/4       TDW down $3/4 at $43 3/8
NCR up $1/4 at $35 1/4
T up $3/8 at $40