FOOL PLATE SPECIAL
An Investment Opinion by Randy Befumo

PETsMART Put Down

PETSMART (Nasdaq: PETM) plunged $3 15/16 to $12, put down today by brokerage firm Donaldson, Lufkin & Jenrette. Although analyst Gary Blater still rates PETsMART a "buy," they have removed it from the recommended list. This development caused PETsMART to punch in a new 52-week low on more than nine times its normal trading volume. Competitor PETCO ANIMAL SUPPLIES (Nasdaq: PETC) saw its ears droop in sympathy, sagging $1 1/2 to $20 on more than two times normal volume.

PETsMART has fallen from a high of $29 7/8 last October to its current level of $12 in a little more than six months. Even more worrisome, the stock began the month of April at around $22 and has fallen precipitously since then. Analysts have revised downward estimate earnings for the the upcoming first quarter more than three times in the past thirty days, according to First Call. Current expectations call for the company to make $0.08 earnings per share (EPS) compared to $0.06 a year ago. These results would be a $0.02 per share increase from what the company earned last quarter when it reported EPS of $0.06, down from $0.13 per share in the year-ago period.

PETsMART's acquisitions of State Line Track, Inc. and Pet City Holdings last year are still causing some problems with earnings growth at the company due to integration issues. With 320 stores in North America and 56 stores in Great Britain, the company is the largest petstore chain in the industry, and the only one with a significant international presence. The company current trades at a little less than one times sales, 20 times current earnings estimates for next year, and 14.4 times fiscal 1999's projected profits. Although the company has been growing revenues at around 30% on an annual basis, until profits began to follow at the same rate, the stock will continue to have difficulties in the months ahead.

UPS

Customer management software company DENDRITE INTERNATIONAL (Nasdaq: DRTE) climbed $1 7/8 to $10 1/2 on a Goldman Sachs upgrade to "market outperform" from "market perform."

HCIA INC. (Nasdaq: HCIA) rose $2 7/8 to $24 3/4 after the healthcare software company yesterday announced a strategic alliance with Bayer Corp., a large medical diagnostics company, to develop cost-savings programs in hospital and clinical settings.

Computer Aided Design software firm AUTODESK INC. (Nasdaq: ADSK) was helped $2 5/8 upward to $38 5/8 on a Wessels Arnold & Henderson rating upgrade to "buy-growth" from "hold."

GRAHAM-FIELD HEALTH PRODUCTS (NYSE: GFI) gained $1 1/4 to $10 5/8 after the medical products manufacturer and distributor reported Q1 revenues of $51.2 million and earnings per share (EPS) of $0.09, missing the mean estimate of $0.10. Gross margin and SG&A expense ratios improved in the quarter.

TEAM RENTAL GROUP (NYSE: BD), now Budget Rent A Car, moved up $1 1/2 to $24 3/8 after Alex. Brown yesterday initiated coverage of the company with a "buy" rating.

Networking Goliath CISCO SYSTEMS (Nasdaq: CSCO) gained $3 1/8 to $56 1/2 after Merrill Lynch released a research note on the company saying it believes Cisco will report Q3 EPS of $0.53 to $0.54, a hair above the mean estimate of $0.52 and just slightly below the high estimate of $0.55.

BRIGHTPOINT SYSTEMS (Nasdaq: CELL) moved up $1 3/8 to $23 3/4 after UBS Securities initiated coverage of the global distributor of wireless telecom products with a "buy" rating.

DOWNS

INVACARE CORP. (Nasdaq: IVCR) lost $2 5/8 to $17 1/2 after the home medical equipment maker said it expects a sales slowdown due to fiscal policy factors both in the U.S. and abroad, a slowdown with a major customer, and because of the strong U.S. dollar.

Off-price department store ROSS STORES (Nasdaq: ROST) was marked down $2 1/2 to $25 3/4 on a downgrade to "neutral" from "buy" from Raymond James.

SANGSTAT MEDICAL (Nasdaq: SANG) fell $1 1/8 to $17 7/8 after the organ transplant pharmaceuticals company reported first quarter financial results and said it may reach profitability by 1998.

Following yesterday's slide, PAIRGAIN TECHNOLOGIES (Nasdaq: PAIR) dropped another $1 3/4 to $20 5/8 after the HDSL networking equipment company said it sees pricing becoming more competitive, which investors feared as accounts receivable days sales outstanding (DSO) increased in the last quarter.

Laboratory instruments and consumables maker FISHER SCIENTIFIC INTERNATIONAL (NYSE: FSH) lost $6 1/4 to $35 7/8 on reporting Q1 revenues of $527 million and EPS of $0.53, which fell short of estimates of $0.55. The company said near-term revenue growth will not match historic levels because of "soft-demand in the clinical-laboratory market."

NORTH AMERICAN VACCINE (AMEX: NVX) lost another $2 to $17 3/8 after yesterday reporting a $0.38 loss per share in its first quarter.

CONFERENCE CALLS

PEPSICO INC. (NYSE: PEP)
(800) 577-6980 (code: 03160)

THE MONEY STORE (Nasdaq: MONE)
(800) 964-4236

RAINFOREST CAFE (Nasdaq: RAIN)
(402) 222-9939

MATTSON TECHNOLOGY (Nasdaq: MTSN)
(402) 220-6969 -- replay available through 5/6

MORROW SNOWBOARDS (Nasdaq: MRRW)
(402) 220-4250 -- replay through 5/6

US WEST MEDIA GROUP (NYSE: UMG)
Replay available through 8PM ET on 5/2
(800) 839-5620
(719) 448-2012 (International callers)

SEAGRAM (NYSE: VO)
1:00 PM EDT
(800) 558-5253 (reservation # 529689) -- replay available through 9PM
ET on 5/2

05/01/97 (Thursday)
RED ROOF INNS (NYSE: RRI)
From 1:00 PM EDT through 5:00 PM on 5/2
(800) 633-8284 (reservation # 2614549) -- replay

MENTOR GRAPHICS CORP. (Nasdaq: MENT)
(201) 633-1010 -- replay

INSIGNIA FINANCIAL GROUP INC. (NYSE: IFS)
(800) 275-3210 -- replay through 5/2 beginning each hour on the hour

INFORMIX (Nasdaq: IFMX)
Available until 5/16
(800) 839-8790 -- replay

PREFERRED EMPLOYERS HOLDINGS (Nasdaq: PEGI)
3:00 PM EDT
(800) 982-5946 (at the recording, dial 666606) -- live call

NETRIX CORP. (Nasdaq: NTRX)
4:00 p.m. EDT
(800) 772-6534 -- live call

ATC COMMUNICATIONS (Nasdaq: ATCT)
(303) 267-1037 (code 195584)
Replay available until Friday

05/02/97 (Friday)
GENZYME (regarding purchase of Seprafilm from Cleveland Clinic)
(402) 220-9054 -- replay through 5/9 at 5:00 PM EDT

THIS WEEK'S CONFERENCE CALL SYNOPSES

ATLAS AIR (Nasdaq: ATLS) Q1 Conference Call
ASCEND COMMUNICATIONS (Nasdaq: ASND) Q1 Conference Call
SUN MICROSYSTEMS (Nasdaq: SUNW) Q3 Conference Call
APPLE COMPUTER (Nasdaq: AAPL) Q2 Conference Call
C-CUBE MICROSYSTEMS (Nasdaq: CUBE) Q1 Conference Call
INTEL (Nasdaq: INTC) Q1 Conference Call
RAINFOREST CAFE (Nasdaq: RAIN) Conference Call
SPRINT (NYSE: FON) Q1 Conference Call
MOTOROLA (NYSE: MOT) Q1 Conference Call
SILICON GRAPHICS (NYSE: SGI) Q3 Conference Call
PRIME MEDICAL SERVICES (Nasdaq: PMSI) Q1 Conference Call

FOOL PORTFOLIO STOCKS
FOOL PORTFOLIO

ATCT up $3/4 at $4 3/4
AOL up $1/8 at $47 1/8
CHV unch. at $68
COMS up $2 1/8 at $33 1/8
DJT unch. at $9
GM down $5/8 at $56 7/8
IOM down $1/8 at $16 5/8
KLAC up $9/16 at $47 9/16
LU down $3/8 at $59
MMM up $3/8 at $87 1/2
T unch. at $33 7/8