FOOL PLATE SPECIAL
An Investment Opinion by MF Templar

WAMU to the Rescue

GREAT WESTERN FINANCIAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GWF)") else Response.Write("(NYSE: GWF)") end if %> is attempting to escape the unwanted embrace of H. F. AHMANSON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AHM)") else Response.Write("(NYSE: AHM)") end if %> by merging with WASHINGTON MUTUAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WAMU)") else Response.Write("(Nasdaq: WAMU)") end if %>. Back on February 18th, H. F. Ahmanson offered 1.05 shares of its own stock for each share of Great Western, valued at $42 7/8 at today's Ahmanson price. Seattle-based Washington Mutual has come along to play "white knight," saving Great Western from Ahmanson's hostile offer by pledging to acquire the Chatsworth, California-based thrift in a stock swap valued at $6.6 billion.

Why is Great Western antsy about the Ahmanson deal? First off, the folks at Ahmanson promised that a merger with Great Western would cut all kinds of employee-related costs -- costs that would come out of Great Western's books, not Ahmanson's. Promising to fire staff at a company you are acquiring is never the best way of making them psyched about a merger. Apparently Great Western has spent the days since the Ahmanson proposal looking for another company that would offer more money and allow it to escape the clutches of Ahmanson. Enter Washington Mutual.

Washington Mutual stated today that it would acquire Great Western in a stock swap, exchanging 0.9 shares of its stock for each Great Western share. This $48 1/8 per share offer topped Ahmanson's bid, guaranteeing the approval of any shareholders that were committed to seeing the company merged. The companies talked about cost cuts on the same scale as the Ahmanson deal, promising that the merger would add to earnings in the first twelve months. However, both companies will suffer the affects of the cost cutting, unlike the lopsided offer promised by Ahmanson. The combined companies believe they can trim $208 million in 1998 expenses and $340 million in 1999 expenses -- not as much as Ahmanson thinks it can trim, but enough to get people interested. Many investors are expecting a Chapter Three to this story, with Ahmanson coming back with another bid. This battle of the banks might be far from over.

UPS

ARIAD PHARMACEUTICALS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ARIA)") else Response.Write("(Nasdaq: ARIA)") end if %> gained $1 7/16 to $8 3/16 on announcing that it has agreed to set up a biotechnology joint venture with Hoechst Marion Roussel, which will also make a $24 million investment in Ariad.

Following the company's recent settlement of charges alleging improper campaign contributions, CROP GROWERS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CGRO)") else Response.Write("(Nasdaq: CGRO)") end if %>, an agricultural insurance company, gained $1 3/8 to $9 7/8 after agreeing to be acquired by Fireman's Fund Insurance for $10.25 per share in cash.

MODTECH INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MODT)") else Response.Write("(Nasdaq: MODT)") end if %> moved $1 1/8 higher to $11 3/4 after the modular classroom manufacturing company reported Q4 earnings per share (EPS) of $0.23 on revenues of $22.9 million.

Year 2000 company COMPUTER HORIZONS CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CHRZ)") else Response.Write("(Nasdaq: CHRZ)") end if %> was sent up $2 5/8 to $31 7/8 after signing a multi-million dollar software and service deal with LOCKHEED MARTIN <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LMT)") else Response.Write("(NYSE: LMT)") end if %>.

REDWOOD TRUST <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RWTI)") else Response.Write("(Nasdaq: RWTI)") end if %> rose $1 15/16 to $53 5/8 after the real estate investment trust declared a fourth quarter dividend of $0.60 on its class A common shares, up from $0.41 per share.

Customer service help-desk software company SCOPUS TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SCOP)") else Response.Write("(Nasdaq: SCOP)") end if %> added $1 5/8 to $27 on being profiled in Investor's Business Daily's "New America" column.

CIRCUIT CITY STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CC)") else Response.Write("(NYSE: CC)") end if %> gained $1 7/8 to $33 5/8 after reporting a 4% decline in February same-store sales, with a 17% rise at its CARMAX GROUP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KMX)") else Response.Write("(NYSE: KMX)") end if %>, eliciting a rating upgrade from Merrill Lynch to "near-term accumulate."

Oil and gas contract driller READING & BATES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RB)") else Response.Write("(NYSE: RB)") end if %> was boosted $1 1/2 to $27 3/8 on a rating upgrade to "attractive" from "neutral" from Bear Stearns.

HARTE-HANKS COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HHS)") else Response.Write("(NYSE: HHS)") end if %> gained $2 7/8 to $28 5/8 on announcing that it will explore strategic alternatives for its newspapers, non-daily publications, and San Antonio TV station, to focus on its marketing businesses.

Industrial and environmental services company ALLWASTE INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ALW)") else Response.Write("(NYSE: ALW)") end if %> jumped $2 1/4 to $9 after announcing an agreement to merge with PHILIP ENVIRONMENTAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PEV)") else Response.Write("(NYSE: PEV)") end if %> for 0.611 shares of Philip stock for each Allwaste share.

DOWNS

Healthcare benefits information company HEALTH RISK MANAGEMENT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HRMI)") else Response.Write("(Nasdaq: HRMI)") end if %> slipped $2 7/8 to $10 1/8 after announcing that it has called off its planned merger with HEALTHPLAN SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HPS)") else Response.Write("(NYSE: HPS)") end if %>, and that it will buy back 200,000 of its shares from that company at $12.50 apiece.

INPUT/OUTPUT INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IO)") else Response.Write("(NYSE: IO)") end if %> splashed down $3 7/8 to $15 3/4 after the maker of seismic systems for energy exploration and research said Q3 sales will be down significantly and that it expects to report EPS of $0.10 to $0.15, missing estimates of $0.28.

Pharmaceutical company ALLERGAN INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AGN)") else Response.Write("(NYSE: AGN)") end if %> lost $2 3/4 to $30 5/8 on reporting that it expects to post first half earnings as low as $0.64 per share, below estimates of $0.83, due to new product rollouts, competition in eye care products, and foreign currency effects.

STORMEDIA INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: STMD)") else Response.Write("(Nasdaq: STMD)") end if %> fell $7/8 to $10 7/8 after the disk drive component supplier said Q1 sales will decline to around $42 million, down from $53 million last quarter, and that it will incur a loss for the quarter.

Semiconductor maker ATMEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATML)") else Response.Write("(Nasdaq: ATML)") end if %> lost $1 3/8 to $31 1/4 after Alex. Brown & Sons dropped its rating on the company to "buy" from "strong buy."

CASCADE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCC)") else Response.Write("(Nasdaq: CSCC)") end if %> lost $2 1/8 to $26 1/8 after worldwide sales VP Michael Champa yesterday registered to sell 108,000 shares.

Integrated steel producer INLAND STEEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IAD)") else Response.Write("(NYSE: IAD)") end if %> was rolled for a $1 1/4 loss to $18 1/2 after Morgan Stanley downgraded the shares to "underperform" from "neutral."

OZEMAIL LTD. (OZEMY) lost another $1 1/4 to $7 3/4 after the Australian Internet services company reported disappointing 1996 results earlier this week.

CONFERENCE CALLS

ZITEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ZITL)") else Response.Write("(Nasdaq: ZITL)") end if %>
Emerald Research Conference Call
(706) 645-9291 code 292069.

DAYTON HUDSON CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DH)") else Response.Write("(NYSE: DH)") end if %>
(800) 633-8284 (reservation # 2471412) -- replay avail until 5PM EST

ORTEL CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORTL)") else Response.Write("(Nasdaq: ORTL)") end if %>
(402) 220-5186 -- replay through 3/7

ECHLIN INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ECH)") else Response.Write("(NYSE: ECH)") end if %>
(re: recent changes at the company)
(800) 683-1535 (password: New company) -- replay thru 3/7

GENZYME <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZ)") else Response.Write("(Nasdaq: GENZ)") end if %>, GENZYME TRANSGENICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GZTC)") else Response.Write("(Nasdaq: GZTC)") end if %>
(402) 220-4884 -- replay available through 3/12

DOLLAR GENERAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DG)") else Response.Write("(NYSE: DG)") end if %>
(402) 220-1032 (code: 971032) -- replay through 3/7 @ 6:00 PM EST

ANNTAYLOR STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ANN)") else Response.Write("(NYSE: ANN)") end if %>
8:30 a.m. EST
(719) 386-9000 (access code 298113) -- first airing
(402) 351-9977 -- playback of recording

03/07/97 (Friday)
GENZYME TISSUE REPAIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZL)") else Response.Write("(Nasdaq: GENZL)") end if %>
Re: Carticel
(402) 220-4882 -- replay available through 3/14

FOOL PORTFOLIO STOCKS

FOOL PORTFOLIO                 BORING PORTFOLIO
ATCT up $1/16 at $7            ATLS down $1/2 at $21 5/8
AOL up $3/8 at $43             BGP up $1 3/8 at $43 5/8
CHV up $1 1/8 at $66 1/2       CSL down $1/8 at $31 3/4
COMS up $5/16 at $35 3/4       CSCO down $1 7/16 at $55 7/16  
GM unch. at $56 7/8            GNT up $1/2 at $37 7/8
IOM up $1/8 at $15 1/4         ORCL down $2 3/4 at $37
KLAC down $1 at $39 7/8        OXHP down $3/4 at $59 3/4
LU down $1 at $53 1/4          PMSI up $1/4 at $11
MMM up $3/8 at $92 1/4         SLR down $1 3/8 at $49 3/8
T up $1/8 at $36 3/8           TDW up $1 3/8 at $44 7/8