<BREAKFAST WITH THE FOOL>
Thursday, January 21, 1999
"If you bet a horse, that's gambling. If you bet you can make three spades, that's entertainment. If you bet cotton will go up three points, that's business. See the difference?" -- William Sherrod
Is Lycos Next?
In the aftermath of @Home Corp.'s <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATHM)") else Response.Write("(Nasdaq: ATHM)") end if %> proposed acquisition of Excite Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: XCIT)") else Response.Write("(Nasdaq: XCIT)") end if %>, Internet portal and search company Lycos Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LCOS)") else Response.Write("(Nasdaq: LCOS)") end if %> reportedly is looking for a partner in the media or telecommunications industry to take a 20% stake in the company. The Financial Times cited Eric Gerritsen, Lycos' vice president for international business development, as saying that the company has started informal talks with a number of unspecified companies regarding making a $1 billion investment.
The Times named German media giant Bertelsmann AG, which last October acquired a 50% interest in barnesandnoble.com, as a possible investor. Lycos and Bertelsmann already have a three-year, $10 million agreement, under which Lycos sends users to Bertelsmann's European online bookstores. The two are also involved in a joint venture that helps Europeans search the Internet for data. Other rumored potential investors include software giant Microsoft Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %> and TV network CBS Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CBS)") else Response.Write("(NYSE: CBS)") end if %>.
With Excite agreeing to merge with @Home in the latest round of industry consolidation, Lycos and Yahoo! <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: YHOO)") else Response.Write("(Nasdaq: YHOO)") end if %> are among the few portals that have yet to partner with a bigger technology or media company. Last year, Walt Disney Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DIS)") else Response.Write("(NYSE: DIS)") end if %> bought a 43% stake in Infoseek <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SEEK)") else Response.Write("(Nasdaq: SEEK)") end if %>, and in December, America Online <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %> said it would acquire Netscape Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NSCP)") else Response.Write("(Nasdaq: NSCP)") end if %>.
News to Go
Following reports that it is in preliminary talks to acquire America West Holdings <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AWA)") else Response.Write("(NYSE: AWA)") end if %>, UAL Corp.'s United Airlines <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UAL)") else Response.Write("(NYSE: UAL)") end if %> issued a statement confirming "that it has expressed to America West Airlines an interest in a possible acquisition of America West," the nation's ninth largest airline, with a strong presence out West. No. 1 United reportedly needs planes for its expansion at Washington's Dulles Airport and "is alarmed by American Airlines' recent purchase of Reno Air, primarily a Western operation," The Wall Street Journal reported.
Did Somebody Say Earnings?...
Ameritrade Holding <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMTD)") else Response.Write("(Nasdaq: AMTD)") end if %> -- fiscal Q1 EPS: $0.13 vs. loss of $0.39 last year; estimate: $0.09
Aspect Telecommunications <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASPT)") else Response.Write("(Nasdaq: ASPT)") end if %> -- Q4 EPS: $0.16 vs. $0.25 last year; estimate: $0.12
@Home Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATHM)") else Response.Write("(Nasdaq: ATHM)") end if %> -- Q4 EPS: loss of $0.06 (before charges) vs. loss of $0.08 last year; estimate: loss of $0.06
Bankers Trust <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BT)") else Response.Write("(NYSE: BT)") end if %> -- Q4 EPS: $0.89 vs. $1.82 last year; estimate: $0.58
bebe stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BEBE)") else Response.Write("(Nasdaq: BEBE)") end if %> -- fiscal Q2 EPS: $0.38 vs. $0.23 last year; estimate: $0.37
Cirrus Logic <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CRUS)") else Response.Write("(Nasdaq: CRUS)") end if %> -- fiscal Q3 EPS: $0.04 (before charges) vs. $0.17 last year; estimate: $0.04
Echelon Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ELON)") else Response.Write("(Nasdaq: ELON)") end if %> -- Q4 EPS: loss of $0.04 vs. loss of $0.10 last year; estimate: loss of $0.03
Electronics for Imaging <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EFII)") else Response.Write("(Nasdaq: EFII)") end if %> -- Q4 EPS: $0.34 vs. $0.07 last year; estimate: $0.26
Fingerhut Cos. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FHT)") else Response.Write("(NYSE: FHT)") end if %> -- Q4 EPS: $0.81 vs. $0.71 last year; estimate: $0.80
Go2Net Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GNET)") else Response.Write("(Nasdaq: GNET)") end if %> -- fiscal Q1 EPS: $0.04 (before charges) vs. loss of $0.04 last year; estimate: breakeven
Hexcel Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HXL)") else Response.Write("(NYSE: HXL)") end if %> -- Q4 EPS: $0.25 (before charges) vs. $0.36 last year; estimate: $0.25
Hyperion Solutions <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HYSL)") else Response.Write("(Nasdaq: HYSL)") end if %> -- fiscal Q2 EPS: $0.28 vs. $0.21 last year; estimate: $0.26
Legato Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LGTO)") else Response.Write("(Nasdaq: LGTO)") end if %> -- Q4 EPS: $0.24 vs. $0.10 last year; estimate: $0.22
Lucent Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LU)") else Response.Write("(NYSE: LU)") end if %> -- fiscal Q1 EPS: $1.05 (before one-time items) vs. $0.86 last year; estimate: $1.01
MMC Networks <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MMCN)") else Response.Write("(Nasdaq: MMCN)") end if %> -- Q4 EPS: $0.09 vs. $0.02 last year; estimate: $0.09
Millipore Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MIL)") else Response.Write("(NYSE: MIL)") end if %> -- Q4 EPS: $0.18 vs. $0.48 last year; estimate: $0.13
Peregrine Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PRGN)") else Response.Write("(Nasdaq: PRGN)") end if %> -- fiscal Q3 EPS: $0.22 vs. $0.14 last year; estimate: $0.21
Praxair Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PX)") else Response.Write("(NYSE: PX)") end if %> -- Q4 EPS: $0.66 vs. $0.65 last year; estimate: $0.66
Providian Financial <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PVN)") else Response.Write("(NYSE: PVN)") end if %> -- Q4 EPS: $0.66 vs. $0.37 last year; estimate: $0.62
Quantum Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QNTM)") else Response.Write("(Nasdaq: QNTM)") end if %> -- fiscal Q3 EPS: $0.29 (before charges) vs. $0.29 last year; estimate: $0.24
Silicon Graphics <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SGI)") else Response.Write("(NYSE: SGI)") end if %> -- fiscal Q2 EPS: loss of $0.14 vs. loss of $0.17 last year; estimate: loss of $0.19
Synopsys Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SNPS)") else Response.Write("(Nasdaq: SNPS)") end if %> -- fiscal Q1 EPS: $0.56 vs. $0.32 (pro forma) last year; estimate: $0.56
U.S. Satellite Broadcasting <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: USSB)") else Response.Write("(Nasdaq: USSB)") end if %> -- Q4 EPS: loss of $0.11 (before charges) vs. loss of $0.31 last tear; estimate: loss of $0.22
UAL Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UAL)") else Response.Write("(NYSE: UAL)") end if %> -- Q4 EPS: $1.52 (before charges) vs. $1.74 last year; estimate: $1.45
Visio Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VSIO)") else Response.Write("(Nasdaq: VSIO)") end if %> -- fiscal Q1 EPS: $0.32 vs. $0.24 last year; estimate: $0.32
VISX Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VISX)") else Response.Write("(Nasdaq: VISX)") end if %> -- Q4 EPS: $0.36 vs. $0.15 last year; estimate: $0.36
VLSI Technology <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VLSI)") else Response.Write("(Nasdaq: VLSI)") end if %> -- Q4 EPS: $0.02 (before gain) vs. $0.45 last year; estimate: loss of $0.01
XOOM.com <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: XMCM)") else Response.Write("(Nasdaq: XMCM)") end if %> -- Q4 EPS: loss of $0.29 (before charges) vs. loss of $0.09 last year; estimate: loss of $0.32 (one analyst)
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Yi-Hsin Chang (TMF Puck), Writer
Jennifer Silber (TMF Amused), Editor