FOOL PLATE SPECIAL
An Investment Opinion by MF Templar

P&G to Acquire Tambrands

Shares of tampon manufacturer TAMBRANDS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TMB)") else Response.Write("(NYSE: TMB)") end if %> rose $2 to $48 1/8 this morning after PROCTER & GAMBLE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PG)") else Response.Write("(NYSE: PG)") end if %> confirmed rumors that it was buying the company out. P&G will purchase Tambrands for $50 a share in cold, hard cash, for a total purchase price of $1.843 billion plus the company's $80.9 million in long-term debt as of the last reported quarter. The sticker price of 20 times this year's earnings per share estimates and 2.9 times sales for Tambrands will dilute P&G shareholders by two to three cents per share, although the company believes that it can make up the difference.

Dow component P&G will add Tambrand's products to its sizable list of household products where it owns the number one brand. P&G currently controls Tide (laundry soap), Cascade (dishwasher soap), Dawn (hand soap), Bounty (paper towels), Charmin (toilet paper), Pampers (diapers), Pringles (potato chips), Folgers (coffee), Duncan Hines (prepared baked goods mixes), Scope (mouthwash) and Metamucil (laxative) to name most of its current product line. Tambrands will fit nicely into P&G's much ballyhooed brand management strategy where it heavily advertises and promotes its core brands, building awareness and maintaining price leadership.

Tambrands is the leader in the tampon category with its Tampax brand, accounting for roughly 45% of all tampons sold in the world. Tampax has been under assault in the past few years as cheaper rivals have whittled away at its brand recognition by engaging in cutthroat pricing tactics. The factors that have been holding the Tampax brand back are exactly the kind of issues that P&G is skilled at overcoming. With a differentiated product line within the brand, including Tampax Natural, Tampex Lites, applicator-free Tampets and biodegradable Satin Touch tampons, the company has all the elements of success. The largest competitor currently is Dow component JOHNSON & JOHNSON's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JNJ)") else Response.Write("(NYSE: JNJ)") end if %> o.b. unit, a unit that might have a few executives more worried about Tampax than the night before.

UPS

Electronics power conversion equipment manufacturer ZYTEC CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ZTEC)") else Response.Write("(Nasdaq: ZTEC)") end if %> gained $1 3/4 to $13 1/4 after announcing that it expects to exceed the Q1 analysts' earnings estimate of $0.19 per share by about 30%.

VIVUS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VVUS)") else Response.Write("(Nasdaq: VVUS)") end if %> gained $4 7/8 to $46 1/2 after the impotence drug company reported Q1earnings per share (EPS) of $0.54. CS First Boston upgraded the company to "buy" from "hold" despite the company's announcement of a slowdown in shipments.

Fiber optic transmission systems manufacturer HARMONIC LIGHTWAVES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HLIT)") else Response.Write("(Nasdaq: HLIT)") end if %> moved $1 3/4 higher to $15 after Cowen & Co. repeated its "strong buy" rating on the company.

MEDIMMUNE INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MEDI)") else Response.Write("(Nasdaq: MEDI)") end if %> rose $1 1/8 to $15 on initiation of coverage from Merrill Lynch. Medimmune yesterday announced progress on a treatment for "pneumonia and bronchiolitis caused by respiratory syncytial virus."

Healthcare software systems company HBO & CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HBOC)") else Response.Write("(Nasdaq: HBOC)") end if %> gained $3 1/8 to $52 3/4 on announcing Q1 revenues of $220 million and EPS of $0.38, beating the mean estimate of $0.33.

CANADIAN OCCIDENTAL PETROLEUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: CXY)") else Response.Write("(AMEX: CXY)") end if %> rose $1 5/8 to $19 5/8 after Talisman Energy said it would not challenge Canadian Oxy's bid for Wascana Energy Inc., which topped Talisman's.

Consumer and industrial products company DYNAMICS CORP. OF AMERICA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DYA)") else Response.Write("(NYSE: DYA)") end if %> added $4 1/4 to $44 3/8 after steel company WHX CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WHX)") else Response.Write("(NYSE: WHX)") end if %> raised its cash takeover bid for Dynamics from $40 to $45 per share.

BEST BUY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BBY)") else Response.Write("(NYSE: BBY)") end if %> gained $1 1/4 to $13 1/4 after reporting Q4 EPS of $0.20, beating the Zacks mean estimate of $0.01 per share.

Auto parts manufacturer STANT CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: STNT)") else Response.Write("(Nasdaq: STNT)") end if %> moved up $4 1/2 to $21 1/8 on announcing an agreement to be acquired for $21.50 per share in cash by British conglomerate TOMKINS PLC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TKS)") else Response.Write("(NYSE: TKS)") end if %>.

DOWNS

MERCK & CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MRK)") else Response.Write("(NYSE: MRK)") end if %> slumped $4 1/2 to $80 3/4 after Merrill Lynch lowered its near- and long-term ratings on the company because of a stronger-than-expected launch of an anticholesterol drug from WARNER LAMBERT CO. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WLA)") else Response.Write("(NYSE: WLA)") end if %> that competes with Merck's products.

UNIX server operating system company SANTA CRUZ OPERATION <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SCOC)") else Response.Write("(Nasdaq: SCOC)") end if %> fell $1 1/4 to $4 5/8 after the company said Q2 EPS will fall to $0.02 to $0.05, down from $0.08 a year ago, drawing an Hambrecht & Quist downgrade to "hold" from "buy."

Cellular and PCS handset distributor CELLSTAR CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CLST)") else Response.Write("(Nasdaq: CLST)") end if %> declined $2 13/16 to $22 after reporting Q1 EPS of $0.30 on $257 million in revenues.

CONFERENCE CALLS

04/10/97 (Thursday)
CASCADE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCC)") else Response.Write("(Nasdaq: CSCC)") end if %>
(800) 936-0941 (code: 319193) -- replay through midnight 4/15

04/10/97 (Thursday)
ASCEND COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %>
(800) 475-6701 (code: 336995) -- replay through 4/18 (North
America)
(320) 365-3844 (code: 336995) -- replay through 4/18 (International)

04/10/97 (Thursday)
TENET HEALTHCARE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: THC)") else Response.Write("(Nasdaq: THC)") end if %>
(402) 220-1007 -- replay from 3:00 PM EDT on 4/10

04/10/97 (Thursday)
COGNOS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COGNF)") else Response.Write("(Nasdaq: COGNF)") end if %>
11:15 a.m. EDT
(800) 997-6906 -- replay available until midnight 4/11

04/10/97 (Thursday)
SALLIE MAE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLM)") else Response.Write("(NYSE: SLM)") end if %>
(800) 844-8633 (passcode 2334)
Replays at 5:00 PM ET on 4/10, 11:00 AM ET on 4/11,
and 11:00 AM ET on 4/14

THIS WEEK'S CONFERENCE CALL SYNOPSES

CUTTER & BUCK <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CBUK)") else Response.Write("(Nasdaq: CBUK)") end if %> Q3 Conference Call
WILLIAMS-SONOMA <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WSGC)") else Response.Write("(Nasdaq: WSGC)") end if %> Q4 Conference Call
ST. JOHN KNITS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SJK)") else Response.Write("(NYSE: SJK)") end if %> Q1 Conference Call

FOOL PORTFOLIO STOCKS

FOOL PORTFOLIO               BORING PORTFOLIO
ATCT up $1/8 at $5 7/8       ATLS down $1 1/4 at $25 1/8
AOL up $1/4 at $45 5/8       BGP up $3/4 at $21 5/8
CHV up $3/8 at $65 1/2       CSL down $1/4 at $29
COMS unch. at $34 5/8        CSCO unch. at $55 3/8
GM down $1/4 at $54 3/8      GNT down $1/4 at $33 5/8
IOM up $3/4 at $18 5/8       ORCL down $1/8 at $39 3/8
KLAC up $1 1/8 at $45 3/8    OXHP up $5/8 at $62
LU up $1/8 at $53 5/8        PMSI up $1/4 at $10 5/8
MMM down $3/4 at $83 7/8     TDW up $1/2 at $46 7/8
T down $1/8 at $34 3/8