FOOL PLATE SPECIAL
An Investment Opinion by Randy Befumo

FX Beats Up BSX

BOSTON SCIENTIFIC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BSX)") else Response.Write("(NYSE: BSX)") end if %> was slammed for a $13 3/8 loss, falling to $47 1/8 after the medical device maker said foreign exchange rates held first quarter revenue growth down to 24%. The company believes that this will bring earnings per share (EPS) significantly below the average analysts' estimate of $0.47 per share. Boston Scientific earned $0.36 per share in the year ago period and $0.42 in the recently completed fourth quarter. Other medical device manufacturers with significant international revenues were down on the news, including GUIDANT CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GDT)") else Response.Write("(NYSE: GDT)") end if %>, falling $3 to $59 1/2.

Without the impact of foreign exchange rates, Boston Scientific would have grown revenues by 27% to $408.9 million. This means foreign exchange rates cost Boston Scientific $9.9 million in revenues, or $0.05 EPS if you divide that number by the 199.1 million shares outstanding after the company's acquisition of TARGET THERAPEUTICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TGET)") else Response.Write("(Nasdaq: TGET)") end if %> on Tuesday in an exchange of shares -- just three days before Boston Scientific belly-flopped. This implies that Boston Scientific will earn somewhere around $0.42 per share because of the currency exchange problems. Should earnings come in lower than this on the $399 million in revenues the company is predicting, something else could be amiss as well.

In the mid-$40s, Boston Scientific now trades at about where it was last summer. In mid-September, the stock blew past $50 and did not look back after two brokerage analysts issued positive reports on the company. At that time, both J.P. Morgan and Lehman Brothers predicted 22% sales growth and 30% earnings growth going forward, a prognostication that has been rendered inaccurate due to the foreign exchange problems. If Boston Scientific only makes $0.42 per share next quarter, it will represent 16% year-over-year growth and flat sequential growth relative to last quarter, the lowest rates for the company in quite some time. Then again, if the company can appropriately hedge for currency exchange rates next quarter, today's price might be considered a bargain by some.

UPS

BIOMATRIX INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BIOX)") else Response.Write("(Nasdaq: BIOX)") end if %> jumped $2 1/8 to $13 3/8 after the company received marketing approval from the Chinese government for its Synvisc treatment for osteoarthritis of the knee.

Construction supply store company FASTENAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FAST)") else Response.Write("(Nasdaq: FAST)") end if %> moved up $2 3/4 to $35 1/8 on reporting Q1 EPS of $0.23, just under the First Call mean estimate of $0.24.

COMPUTER HORIZONS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CHRZ)") else Response.Write("(Nasdaq: CHRZ)") end if %> gained $2 1/2 to $37 after confirming that it has won a Year 2000 software coding contract from AT&T.

Specialty semiconductor company DALLAS SEMICONDUCTOR CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DS)") else Response.Write("(NYSE: DS)") end if %> shot up $5 to $31 5/8 after reporting Q1 revenues of $89 million and EPS of $0.50, beating estimates of $0.38.

Software design and consulting firm KEANE INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: KEA)") else Response.Write("(AMEX: KEA)") end if %> leapt $5 1/4 to $36 after reporting estimate-busting Q1 EPS of $0.29, which won it a rating upgrade to "buy" from Alex. Brown.

DOWNS

Print server company ELECTRONICS FOR IMAGING <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EFII)") else Response.Write("(Nasdaq: EFII)") end if %> was rolled back $2 1/2 to $39 1/4 after reporting Q1 earnings per share (EPS) of $0.37, which advanced 62% over Q1 1996 and beat estimates by a penny per share.

LOEHMANN'S INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LOEH)") else Response.Write("(Nasdaq: LOEH)") end if %> fell $2 1/8 to $8 3/4 after the women's clothing stores pre-announced Q1 sales of $116 to $118 million and EPS of $0.14 to $0.20, which will miss the mean estimate of $0.32.

Electronics design software company MENTOR GRAPHICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MENT)") else Response.Write("(Nasdaq: MENT)") end if %> was clipped $1 1/4 to $7 3/8 on pre-announcing flattish Q1 revenues of $105 million and a quarterly loss, falling short of estimates of $0.06 per share.

FINE HOST CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FINE)") else Response.Write("(Nasdaq: FINE)") end if %> was cut $2 1/16 to $22 13/16 after the company announced the resignation of two directors, including its Chair, who will be replaced by the foodservice company's CEO.

Ion beam etching equipment maker VEECO INSTRUMENTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VECO)") else Response.Write("(Nasdaq: VECO)") end if %> lost another $2 3/8 to $30 1/4 on yesterday's Merrill Lynch rating downgrade to "near-term accumulate."

Digital video chip company ESS TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ESST)") else Response.Write("(Nasdaq: ESST)") end if %> lost $2 9/16 to $24 1/2 after competitor C-CUBE MICROSYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CUBE)") else Response.Write("(Nasdaq: CUBE)") end if %> reported first quarter earnings this morning.

Biopharm company BIOGEN INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BGEN)") else Response.Write("(Nasdaq: BGEN)") end if %> fell $4 5/8 to $34 1/8 after reporting Q1 EPS of $0.22, meeting estimates, on a 157% increase in quarterly revenues.

ASCEND COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %> lost $3 to $43 3/8 after the remote access networking products company reported yesterday Q1 EPS of $0.36 (before acquisition charges) on revenues of $202 million.

Ascend's merger partner, WAN switch and access products company CASCADE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCC)") else Response.Write("(Nasdaq: CSCC)") end if %> lost $1 7/8 to $28 1/2 on reporting Q1 operating EPS of $0.15 on revenues of $90 million.

INTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> slipped $4 1/8 to $133 1/8 as investors expect the company to institute deeper-than-usual price cuts to stave off competition from Pentium clones from competitors.

DELGRATIA MINING <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DELGF)") else Response.Write("(Nasdaq: DELGF)") end if %> was shot down $6 3/4 to $9 1/4 after being halted since late March, when the company said it was "premature" to quantify mineral reserves at its Nevada properties.

Industrial tools and supplies retailer W.W. GRAINGER <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GWW)") else Response.Write("(NYSE: GWW)") end if %> slid $3 1/8 to $73 1/8 after reporting Q1 EPS of $1.03, missing the mean estimate of $1.07.

SEAGATE TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SEG)") else Response.Write("(NYSE: SEG)") end if %> lost $2 1/2 to $46 after competitor WESTERN DIGITAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WDC)") else Response.Write("(NYSE: WDC)") end if %> reported earnings. Investors are worried about price competition in high-end disk drives. Disk drive head supplier READ-RITE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RDRT)") else Response.Write("(Nasdaq: RDRT)") end if %> lost $2 7/16 to $29 1/4.

Direct PC seller MICRON ELECTRONICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MUEI)") else Response.Write("(Nasdaq: MUEI)") end if %> fell $1 1/8 to $21 1/8 after parent company MICRON TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MU)") else Response.Write("(NYSE: MU)") end if %> said that it is not in talks with COMPAQ <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPQ)") else Response.Write("(NYSE: CPQ)") end if %> to sell the unit, contrary to the hinting of board member and founding investor, potato magnate J.R. Simpot.

CONFERENCE CALLS

04/10/97 (Thursday)
CASCADE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCC)") else Response.Write("(Nasdaq: CSCC)") end if %>
(800) 938-0941 (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

04/14/97 (Monday)
INTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %>
(402) 280-9021 -- replay through 4/18

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 up $3/16 at $5 5/8     ATLS down $3/8 at $24 5/8
AOL down $1 1/4 at $45 3/8  BGP down $3/4 at $20 1/4
CHV down $3/4 at $64 3/4    CSL down $1/8 at $28 3/4
COMS down $1/4 at $32 3/8   CSCO down $1 1/8 at $51 1/2
GM down $1 1/8 at $53 3/8   GNT down $1 1/4 at $30 7/8
IOM down $3/8 at $17 1/2    ORCL down $1/2 at $37
KLAC down $2 1/2 at $41 1/2 OXHP down $1/4 at $64 1/8
LU down $1 1/8 at $51 7/8   PMSI down $3/8 at $9 3/4
MMM down $1 3/8 at $82      TDW down $3/4 at $44 1/4
T down $1/2 at $34