FOOL ON THE HILL An Investment Opinion
Dot-coms Discover Profit?!
By Bill Mann (TMF Otter)

Internet companies have suddenly been shunned by the market due to their uncertain prospects and their lack of profitability -- precisely the same factors that made them so popular for 18 months. Philip Fisher spoke out against companies that openly tout their successes and clam up about their failures, while Warren Buffett has stressed the need for companies to resist going along with the crowd -- two traits that many of the dot-coms sorely lack as investors are now seeking substance over appearance.
FULL STORY

RULE BREAKER PORTFOLIO A QuickNews Extra
Break Down: Lernout & Hauspie, Part 2
By Brian Lund (TMF Tardior)

Break Down August continues with a second look at Lernout and Hauspie. The company leads an important industry and has a sustainable advantage over its competition, but concerns about its management call into question its Rule-Breaker potential. It falls short on the other criteria as well.
FULL STORY

Excite@Home: @ the 2 Million Mark
By Nico Detourn (TMF Nico)

Two-thirds of the way to its year-end subscriber target, Excite@Home cited momentum in the high-speed access market and the cooperation of its cable partners as instrumental in crossing the 2 million milestone. But while the Rule Breaker's combination of media and connectivity is a hit with consumers, getting it to click with investors once again is another story.
FULL STORY

RULE MAKER PORTFOLIO A QuickNews Extra
Merger Boosts Pfizer's Cash
By Phil Weiss (TMF Grape)

Pfizer released its 10-Q for the second quarter last week. This gives us the first opportunity to see if there have been any changes to the quality of its balance sheet after its merger with Warner-Lambert. Early indications are that it has tightened collection of receivables and improved cash from operations.
FULL STORY

Waiting for Brighter Skies at SGI
By Brian Graney (TMF Panic)

Server and visual workstations maker SGI continues to put out press releases regarding its new product line, but investors appear unimpressed. Meanwhile, the firm's low share price has been attracting value investors. For this longshot to pay off, though, the company first needs to show proof of improvements, especially in the mindshare and execution departments.
FULL STORY

Wireless Carriers' Next Moves
By Chris Rugaber (TMF RFK)

Germany's third-generation (3G) wireless spectrum auction concluded last week, with six groups of wireless carriers paying a total of $46 billion for the coveted licenses. Now, the winners -- or survivors -- of that auction must spend billions more to upgrade their networks, putting them further in the hole. These additional expenditures, while great for wireless infrastructure companies, will make it harder for wireless carriers to earn a sufficient return on their investments.
FULL STORY

FOOL PLATE SPECIAL An Investment Opinion
U.S. OKs Human Embryo Research
By Tom Jacobs (TMF Tom9)

Human embryo stem cell research promises a revolution for organ transplants, cancer and other disease treatments, and drug candidate testing, but political opposition led Congress in 1996 and 1998 to ban federal funding for stem cell research. Today the U.S. National Institutes of Health approved funding guidelines it believes are legal. The controversy won't end, but the NIH action addresses a key uncertainty for the biotech sector.
FULL STORY

BREAKFAST WITH THE FOOL
Excite@Home Excites 2 Million
By LouAnn Lofton (TMF Lou2)

Get out your noisemakers for Excite@Home (Nasdaq: ATHM). The broadband Internet cable access and content provider announced this morning that it's surpassed 2 million subscribers for its high-speed, always-on Internet service. Not included in that number are the subscribers that will be contributed from the recently announced international joint venture through Excite Chello.
FULL STORY

Today's Market Movers

Ups

Tax preparation software company Intuit (Nasdaq: INTU) rose $1 7/16 to $56 9/16 today on news that CEO Steve Bennett said on a conference call that fiscal 2001 sales are seen rising 22% and pro forma operating income 30%, more than analysts' expected, over 2000 numbers. Fiscal Q4 2000 (ended July 31) losses before adjustments were $0.04, half last year's loss and a nickel better than expected by Wall Street.

Internet investment company CMGI (Nasdaq: CMGI) moved up $6 3/16 to $43 15/16 today. The company agreed to pay $76 million over the next 10 years, with adjustments for the subsequent five, to put its name on the New England Patriots' new stadium. CMGI is based in Andover, Mass., and the company -- an incubator for business-to-business Internet firms -- will see its name in lights when the stadium opens officially in 2002.

O2Micro International (Nasdaq: OIIM), which makes integrated circuits for laptop computers, shot up $11 49/64, or 130%, to $20 49/64 in its first day of trading. The company sold 4 million shares for $9 each, marking the high end of its projected offer range. The shares opened at $16 each.

Computer products direct reseller Multiple Zones (Nasdaq: MZON) jumped $2 7/8, or 74%, to $6 3/4 today. The company last night said it signed a multiyear agreement to be Microsoft's (Nasdaq: MSFT) "primary source" for the procurement, configuration, and distribution of hardware and software. Sixty Multiple Zones employees have been working in Redmond, Wash., since April setting up a distribution facility for the software giant.

Downs

Wide area network (WAN) management software company Visual Networks (Nasdaq: VNWK) slid $3 31/32 to $6 27/32 following last night's news that the company expects Q3 revenues to be "approximately half" the $30 million it forecasted last month. Losses, meanwhile, will come in steeper than the $0.03 the company hoped for. Q4 sales will probably be about the same as in Q3. "The magnitude of the challenges facing us is more complex than we originally thought," said CEO Scott Stouffer in a statement, "as is the impact on our ability to project future sales."

Intermediate chemical, polymer, and methanol manufacturer Lyondell Chemical (NYSE: LYO) slid $1 1/4 to $12 on news that the company decided not to sell its majority interest in an oil refining company it co-owns with Petroleos de Venezuela. The joint venture is heavy in debt, according to Bloomberg reports, and the company is looking to refinance. Sale talks had been ongoing for several months.

Idaho-based grocer Albertson's (NYSE: ABS) lost $3 3/4 to $22 11/16 today on news that the company expects fiscal Q2 earnings for the quarter ending August 3 to come in around $0.50 per share before merger-related costs. Wall Street was looking for $0.62. The company, still struggling to gain efficiencies from its purchase of American Stores, said lower-than-expected same-store sales growth plus higher-than-planned costs are hurting profits.

Aftermarket auto parts chain operator CSK Auto (NYSE: CAO) fell $4 1/2 to $4 15/16 after the company said it expects to report fiscal Q2 (ended July 30) earnings of $0.30 per share, well off the market's current expectation of $0.49. The company blamed slow sales at recently acquired stores and slumping same-store sales. Earnings will be officially announced Sept. 7.

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