<THE FOOLISH FOUR>

Foolish Four Report
by Robert Sheard

LEXINGTON, KY. (May 19, 1998) -- DuPont <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DD)") else Response.Write("(NYSE: DD)") end if %> is in a deal-making mood lately. After announcing last week that it's shedding its Conoco energy business in order to focus more on its life sciences and agri-business, today the on-again, off-again Foolish Four company announced it's buying out Merck's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MRK)") else Response.Write("(NYSE: MRK)") end if %> half interest in their pharmaceuticals joint venture.

The $2.6 billion deal, which will be dilutive for earnings by a few cents in both 1998 and 1999, will boost DuPont's Life Sciences operations to some 20% of the company's overall income (excluding the soon-to-be-gone operations of Conoco).

The stock jumped another 1.8% today. DuPont is on something of a tear since bottoming out around $53 a share. It's now in the low $80s.

Another Foolish Four company in the deal-making news today is Eastman Kodak <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EK)") else Response.Write("(NYSE: EK)") end if %>. A joint venture announced today with America Online <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %> will allow the twelve million AOL subscribers to have their photographs returned to them via the Internet after dropping them off at a Kodak-affiliated developer.

The program is going to be called "You've Got Pictures," a play on America Online's famous reminder, "You've Got Mail." The program takes the film and turns digital images around in 48 hours to the customer's America Online address.

Kodak's stock wasn't affected by the announcement today, falling a fraction.

So we have it, another day in the life of a Foolish Four investor. For me, I'm off to see my son in his very first play, Harold and the Purple Crayon -- a proud day in Casa Sheard. Fool on!

Current Dow Order | 1998 Dow Returns

[Robert Sheard is the author of the The Unemotional Investor (Simon & Schuster, 1998) available now at Amazon.com and your local bookseller.]

TODAY'S NUMBERS
Stock  Change   Last 
 -------------------- 
 UK   +   1/16  53.38 
 IP   -   3/8   52.31 
 MO   +   5/8   35.63 
 EK   -   1/4   70.25 
 
 
                  Foolish Four Returns 
                    Day         YTD 
         FOOL-4   -0.39%     10.74% 
           DJIA   +0.04%     14.50% 
        S&P 500   +0.33%     14.33% 
         NASDAQ   +0.78%     17.54% 
  
  
     Rec'd   #  Security     In At       Now    Change 
  12/31/97  291 Union Carb    42.94     53.38    24.31% 
  12/31/97  289 Int'l Pape    43.13     52.31    21.30% 
  12/31/97  206 Eastman Ko    60.56     70.25    16.00% 
  12/31/97  276 Philip Mor    45.25     35.63   -21.27% 
  
  
     Rec'd   #  Security     In At     Value    Change 
  12/31/97  291 Union Carb 12494.81  15532.13  $3037.31 
  12/31/97  289 Int'l Pape 12463.13  15118.31  $2655.19 
  12/31/97  206 Eastman Ko 12475.88  14471.50  $1995.63 
  12/31/97  276 Philip Mor 12489.00   9832.50 -$2656.50 
  
  
                              CASH    $415.96 
                             TOTAL  $55370.40