<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

Latest Market Numbers

Is Lycos Next?

In the aftermath of @Home Corp.'s (Nasdaq: ATHM) proposed acquisition of Excite Inc. (Nasdaq: XCIT), Internet portal and search company Lycos Inc. (Nasdaq: LCOS) 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. (Nasdaq: MSFT) and TV network CBS Corp. (NYSE: CBS).

With Excite agreeing to merge with @Home in the latest round of industry consolidation, Lycos and Yahoo! (Nasdaq: YHOO) are among the few portals that have yet to partner with a bigger technology or media company. Last year, Walt Disney Co. (NYSE: DIS) bought a 43% stake in Infoseek (Nasdaq: SEEK), and in December, America Online (NYSE: AOL) said it would acquire Netscape Communications (Nasdaq: NSCP).

News to Go

Following reports that it is in preliminary talks to acquire America West Holdings (NYSE: AWA), UAL Corp.'s United Airlines (NYSE: UAL) 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 (Nasdaq: AMTD) -- fiscal Q1 EPS: $0.13 vs. loss of $0.39 last year; estimate: $0.09
Aspect Telecommunications (Nasdaq: ASPT) -- Q4 EPS: $0.16 vs. $0.25 last year; estimate: $0.12
@Home Corp. (Nasdaq: ATHM) -- Q4 EPS: loss of $0.06 (before charges) vs. loss of $0.08 last year; estimate: loss of $0.06
Bankers Trust (NYSE: BT) -- Q4 EPS: $0.89 vs. $1.82 last year; estimate: $0.58
bebe stores (Nasdaq: BEBE) -- fiscal Q2 EPS: $0.38 vs. $0.23 last year; estimate: $0.37
Cirrus Logic (Nasdaq: CRUS) -- fiscal Q3 EPS: $0.04 (before charges) vs. $0.17 last year; estimate: $0.04
Echelon Corp. (Nasdaq: ELON) -- Q4 EPS: loss of $0.04 vs. loss of $0.10 last year; estimate: loss of $0.03
Electronics for Imaging (Nasdaq: EFII) -- Q4 EPS: $0.34 vs. $0.07 last year; estimate: $0.26
Fingerhut Cos. (NYSE: FHT) -- Q4 EPS: $0.81 vs. $0.71 last year; estimate: $0.80
Go2Net Inc. (Nasdaq: GNET) -- fiscal Q1 EPS: $0.04 (before charges) vs. loss of $0.04 last year; estimate: breakeven
Hexcel Corp. (NYSE: HXL) -- Q4 EPS: $0.25 (before charges) vs. $0.36 last year; estimate: $0.25
Hyperion Solutions (Nasdaq: HYSL) -- fiscal Q2 EPS: $0.28 vs. $0.21 last year; estimate: $0.26
Legato Systems (Nasdaq: LGTO) -- Q4 EPS: $0.24 vs. $0.10 last year; estimate: $0.22
Lucent Technologies (NYSE: LU) -- fiscal Q1 EPS: $1.05 (before one-time items) vs. $0.86 last year; estimate: $1.01
MMC Networks (Nasdaq: MMCN) -- Q4 EPS: $0.09 vs. $0.02 last year; estimate: $0.09
Millipore Corp. (NYSE: MIL) -- Q4 EPS: $0.18 vs. $0.48 last year; estimate: $0.13
Peregrine Systems (Nasdaq: PRGN) -- fiscal Q3 EPS: $0.22 vs. $0.14 last year; estimate: $0.21
Praxair Inc. (NYSE: PX) -- Q4 EPS: $0.66 vs. $0.65 last year; estimate: $0.66
Providian Financial (NYSE: PVN) -- Q4 EPS: $0.66 vs. $0.37 last year; estimate: $0.62
Quantum Corp. (Nasdaq: QNTM) -- fiscal Q3 EPS: $0.29 (before charges) vs. $0.29 last year; estimate: $0.24
Silicon Graphics (NYSE: SGI) -- fiscal Q2 EPS: loss of $0.14 vs. loss of $0.17 last year; estimate: loss of $0.19
Synopsys Inc. (Nasdaq: SNPS) -- fiscal Q1 EPS: $0.56 vs. $0.32 (pro forma) last year; estimate: $0.56
U.S. Satellite Broadcasting (Nasdaq: USSB) -- Q4 EPS: loss of $0.11 (before charges) vs. loss of $0.31 last tear; estimate: loss of $0.22
UAL Corp. (NYSE: UAL) -- Q4 EPS: $1.52 (before charges) vs. $1.74 last year; estimate: $1.45
Visio Corp. (Nasdaq: VSIO) -- fiscal Q1 EPS: $0.32 vs. $0.24 last year; estimate: $0.32
VISX Inc. (Nasdaq: VISX) -- Q4 EPS: $0.36 vs. $0.15 last year; estimate: $0.36
VLSI Technology (Nasdaq: VLSI) -- Q4 EPS: $0.02 (before gain) vs. $0.45 last year; estimate: loss of $0.01
XOOM.com (Nasdaq: XMCM) -- 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