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Monday, January 11, 1999

"The best investments of all involve buying a Rule Breaker and holding it all the way through to its becoming a Rule Maker and beyond. It only takes one of these in a lifetime to make an investor rich." -- David and Tom Gardner, Rule Breakers, Rule Makers

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The Truth Is Out There

Fact is stranger than fiction. In a case more X-Files than The X-Files, the founder and chief strategist of Internet marketing and consulting firm USWeb Corp. (Nasdaq: USWB) has resigned in a Mulder-esque pursuit of "the Truth." Joe Firmage, who has been called the "Fox Mulder of Silicon Valley," is devoting his time and money to investigating UFOs and uncovering what he believes is a government conspiracy to conceal evidence of the existence of extraterrestrials.

The 28-year-old former CEO of USWeb said he decided to leave the company because he didn't want to hurt the company's reputation or credibility. The San Francisco Chronicle, which broke the bizarre story Saturday, reported that Firmage was pressured to step down as CEO and assume a lesser role in November because of his mission to prove the existence of UFOs.

Believe it or not, Firmage maintains that many high-tech breakthroughs, including semiconductors, fiber optics, and lasers, can be traced to an alleged alien spaceship crash in Roswell, New Mexico, in 1947. "There is truth to the UFO phenomenon, that is undeniable," Firmage told Reuters in an interview. "I'm not praying for a spacecraft to come pick me up, I'm just saying there is good, rational, left brain evidence of things out there."

Firmage has published his views on extraterrestrials online under the title "The Truth: What is Your Path?" This can be found on his website, www.thewordistruth.org. Apparently, the Silicon Valley executive says he had a personal encounter with a "remarkable being, clothed in brilliant white light" shortly before USWeb went public in 1997.

News to Go

Telecommunications equipment maker Lucent Technologies (NYSE: LU) is in talks to acquire computer networking equipment company Ascend Communications (Nasdaq: ASND) for more than $16 billion, The Financial Times reported. Both companies have declined comment.

CBS Corp. (NYSE: CBS), which has surpassed NBC as the top-rated network, said it met promised ratings in the first four months of the new TV season, the first time it has done so in several years. Ratings have improved, especially among younger viewers, thanks in part to having NFL games in its lineup and strong shows such as Everybody Loves Raymond and Martial Law. 1999 will be a "much better year" than 1998, said Leslie Moonves, president of CBS Television.

Following MCI Worldcom's (Nasdaq: WCOM) announcement late in the trading day Friday that it has decided not to make a bid for AirTouch Communications (NYSE: ATI), U.K. phone giant British Telecommunications (NYSE: BTY) reportedly also has no interest in acquiring the wireless communications company, according to The Financial Times. Bell Atlantic (NYSE: BEL) and Vodafone Group (NYSE: VOD) of Britain already have thrown their hats in the ring for AirTouch.

Pharmaceutical giant Merck & Co. (NYSE: MRK) expects to claim that its new arthritis drug, Vioxx, doesn't cause gastrointestinal problems and is more effective in treating a wide range of pain problems than rival Celebrex from Monsanto Co. (NYSE: MTC), The Wall Street Journal reported. The drug may receive FDA approval by late spring.

Sharper Image Corp. (Nasdaq: SHRP), whose stock has soared of late on optimism about its Internet strategy, said it will expand its website to include an Internet auction site. Meanwhile, Musicland Stores (NYSE: MLG) announced plans to launch late in the second quarter of this year several e-commerce sites offering a "broad array and depth of entertainment products." The music retailer said its online offerings will include a full-line of music, video, DVDs, selected licensed apparel, portable electronics, accessories, trend merchandise, sheet music and music books, entertainment books, video games, and entertainment software.

Tobacco giant British American Tobacco Plc (NYSE: BTI) said it will acquire Rothmans International SA from Switzerland's Compagnie Financiere Richemont AG and South Africa's Rembrandt Group Ltd. in a stock swap valued at 4.6 billion pounds, or about $7.5 billion.

Polyurethane and polymer foam products manufacturer Foamex International (Nasdaq: FMXI) announced that its planned acquisition by privately held Trace International Holdings has been called off because Trace couldn't obtain the necessary funding to finance the transaction. Foamex said it will continue to "explore the Company's strategic alternatives with its advisors."

More Foolishness

The Fool's Lycos Web message board came alive last week as the company's stock shot up 75%. Join the hot discussion. While you're at it, check out the Fool's StockTalk interview with Lycos CEO Bob Davis... You case you missed it, last week in review -- the latest Notes From a Fool... Find out what Tom and Dave Gardner talked about on Saturday's Motley Fool Radio Show. (Hint: think Internet.)