FOOL PLATE SPECIAL
An Investment Opinion by MF Templar

Primark Marked Down

Investment information provider PRIMARK CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PMK)") else Response.Write("(NYSE: PMK)") end if %> dropped $5 1/8 to $18 7/8 this morning after the Waltham, Massachusetts-based firm reported that earnings would not meet consensus expectations for the quarter. The company will miss earnings by a whooping 40%, reporting earnings per share (EPS) of only $0.15 for the first quarter instead of the $0.25 that the Street expected according to I/B/E/S, Primark's earnings estimate calculating arm. The company blamed Groupe DAFSA, its Paris-based information business, and TIMCO, its aircraft maintenance subsidiary, for the shortfall and does not expect to make up the ten cents over the next year.

Primark stressed in its press release that it is making a concerted effort to shore up earnings for the rest of the year. Primark has assigned a "top executive" to help integrate DAFSA into Primark's information resources. TIMCO's situation is a bit more difficult, as its ability to earn revenues is being constricted by what the company calls an industry-wide shortage of qualified airline mechanics. The presence of the aircraft maintenance subsidiary is a bit strange, given that almost all of Primark's units are focused on providing information. As the press release says, "The company, through its subsidiaries, targets the data-intensive financial, government, weather and communications/computer information markets."

Depending on how much future quarters are impacted, this could be an overreaction and a tremendous bargain. Before today's news, estimates for this year were $1.25 EPS and for next year were $1.50 EPS for a company that has been growing in the 20% range. On March 19th, with the company at $24 and change, Primark announced a one million share repurchase program. Given the stock is down more than 20% from those levels, the board might be persuaded to expand the share repurchase. As it is, Primark will repurchase about 3.5% of its outstanding shares with this program. If it can control the losses at the two units causing the problems, and if the problems are limited to only these two units, $1.50 EPS next year may not be out of the question.

UPS

Networking software and modem company MICROCOM INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MNPI)") else Response.Write("(Nasdaq: MNPI)") end if %> shot up $5 3/8 to $15 7/8 after COMPAQ <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPQ)") else Response.Write("(NYSE: CPQ)") end if %> dangled a $16.25 per share cash takeover offer in front of the company's face, which Microcom accepted.

U.S. OFFICE PRODUCTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: OFIS)") else Response.Write("(Nasdaq: OFIS)") end if %> gained $1 1/8 to $22 1/4 after the office supplies and coffee distributor said its Q4 results are tracking analysts' expectations of $0.30 per share.

Computing consulting company GARTNER GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GART)") else Response.Write("(Nasdaq: GART)") end if %> rose $1 3/8 to $25 1/4 after Montgomery Securities started coverage of the company yesterday with a "buy" rating.

MAVERICK TUBE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MAVK)") else Response.Write("(Nasdaq: MAVK)") end if %>, which makes tubular steel products for the energy drilling industry, gained $1 3/4 to $20 7/8 after Raymond James started coverage of the company with a "buy" rating.

Automotive repair and manufacturing tool company SPX CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SPW)") else Response.Write("(NYSE: SPW)") end if %> surged $6 3/8 to $52 1/4 after announcing that tomorrow it will commence a Dutch action buyback of 2.7 million shares, or about 16% of currently outstanding shares, for between $48 and $56 per share.

DOWNS

Document management software company PC DOCS GROUP INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DOCSF)") else Response.Write("(Nasdaq: DOCSF)") end if %> lost $1 1/4 to $5 on pre-announcing Q3 revenues of $17.2 million (translated from Canadian dollars) and EPS of $0.01, missing estimates of $0.12.

PAIRGAIN TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PAIR)") else Response.Write("(Nasdaq: PAIR)") end if %> slid $4 1/8 to $25 3/4 on reporting Q1 revenues of $71 million and EPS of $0.19 (before acquisition charges), which beat estimates of $0.17 per share.

Small business lending company SIRROM CAPITAL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SROM)") else Response.Write("(Nasdaq: SROM)") end if %> fell $2 3/8 to $29 3/4 after yesterday reporting estimate-beating EPS of $0.43, but the company said its Harris Williams Co. unit didn't perform up to expectations.

LIBERTY MEDIA <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LBTYA)") else Response.Write("(Nasdaq: LBTYA)") end if %> was tuned out for a $1 3/8 loss to $19 5/8 after the IRS ruled unfavorably on the tax treatment TELE-COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TCOMA)") else Response.Write("(Nasdaq: TCOMA)") end if %>, or TCI, requested for a proposed spin-off of the Liberty programming unit.

SEARS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: S)") else Response.Write("(NYSE: S)") end if %> lost $2 3/4 to $48 1/8 after the company said it will "voluntarily repay Chapter 7 bankruptcy debtors [credit customers] nationwide whose debt reaffirmations were not filed" by the company, which will impact 1997 earnings.

COGNOS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COGNF)") else Response.Write("(Nasdaq: COGNF)") end if %> slipped $2 to $26 1/8 after the business application software company reported Q4 earnings per share (EPS) of $0.29, beating the $0.27 First Call mean estimate.

Computer and office equipment maintenance company HALIFAX CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: HX)") else Response.Write("(AMEX: HX)") end if %> lost $1 7/8 to $8 3/4 on warning of "minimal net income" in its fourth quarter.

HAMBRECHT & QUIST GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HMQ)") else Response.Write("(NYSE: HMQ)") end if %> lost $2 1/2 to $18 1/2 after Morgan Stanley restarted coverage of the brokerage and underwriter with a "neutral" rating.

Supermarket company SAFEWAY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SWY)") else Response.Write("(NYSE: SWY)") end if %> fell $3 to $45 after reporting Q1 operating EPS of $0.51, which beat estimates by a penny per share. The company also said that a strike by workers at 73 stores in Alberta, Canada continues.

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
ADVANCED MICRO DEVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMD)") else Response.Write("(NYSE: AMD)") end if %> Q4 Conference Call
SEAGATE TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SEG)") else Response.Write("(NYSE: SEG)") end if %> Q3 Conference Call

FOOL PORTFOLIO STOCKS

FOOL PORTFOLIO               BORING PORTFOLIO
ATCT down $1/8 at $5 1/2     ATLS up $1/4 at $25 5/8
AOL up $7/8 at $46           BGP down $3/8 at $21 1/8
CHV down $3/4 at $64 1/2     CSL down $1/8 at $28 3/4
COMS down $3/4 at $33 1/4    CSCO down $15/16 at $53 1/8
GM up $3/8 at $54 7/8        GNT down $5/8 at $31 5/8
IOM down $1/4 at $17 7/8     ORCL down $5/8 at $37 3/4
KLAC down $11/16 at $45 3/8  OXHP down $1/4 at $62 7/8
LU down $1/8 at $53 1/4      PMSI unch. at $10 1/2
MMM up $5/8 at $83           TDW down $/2 at $44 7/8
T down $3/8 at $34 1/8