<BREAKFAST WITH THE FOOL>

Wednesday, June 23, 1999

"Without discipline, you can do nothing in this world, nothing." -- Joseph Jett

Latest Market Numbers

CMGI May Buy AltaVista

Internet investment firm CMGI Inc. (Nasdaq: CMGI) is reportedly in talks to acquire AltaVista and other Internet assets from Compaq Computer (NYSE: CPQ) for $2 billion to $3 billion in stock, according to The Wall Street Journal and other media sources. Meanwhile, CMGI remains interested in buying out the 82% of Lycos (Nasdaq: LCOS) it doesn't already own. Apparently the deals are not mutually exclusive.

Compaq got its hands on AltaVista through its acquisition of Digital Equipment, and the PC maker has said it plans to spin out the search engine company in an initial public offering. But Compaq's been dealing with issues of its own of late -- it's losing money and still in search of a CEO after giving the boot to Eckhard Pfeiffer in April.

CMGI's deal with Compaq could be announced as early as Thursday, the Journal reported. AltaVista appears to be planning a relaunch of its site at the end of this month that will focus on local portals and updated shopping offerings. The redesign reportedly also will add audio and video searches to AltaVista's search capabilities.

News To Go

Computer networking company and PalmPilot maker 3Com (Nasdaq: COMS) posted fiscal fourth-quarter earnings of $0.24 a share, up from $0.17 a year ago and topping analysts' mean estimate by a penny. Revenues for the quarter totaled $1.416 billion compared with $1.375 billion last year. But the company warned that revenues in the next two quarters may fall year-over-year as sales of modems and computer-connector cards weaken.

Paper products maker Georgia-Pacific (NYSE: GP) announced that it expects to report better-than-anticipated second-quarter earnings, "well above" current analysts' estimates. The company is predicting earnings of more than $1.00 a share compared with the current mean estimate of $0.89. Georgia-Pacific will report Q2 earnings July 21.

It's the S&P shuffle. Electronics retailer Best Buy (NYSE: BBY) will replace AirTouch Communications (NYSE: ATI) in the Standard & Poor's 500 Index after the close of trading June 28. AirTouch is being acquired by Vodafone Group Plc (Nasdaq: VODFF). Swift Transportation Co. (Nasdaq: SWFT) will take Best Buy's spot in the S&P MidCap 400 Index.

Also, network data storage equipment maker Network Appliance (Nasdaq: NTAP) will replace Ascend Communications (Nasdaq: ASND) in the S&P 500 Index after the close on June 24. Ascend is being acquired by Lucent Technologies (NYSE: LU), already an index component. For a complete listing of changes in the S&P indices, click here.

Qwest Communications International (Nasdaq: QWST) is close to upping its unsolicited bids for US WEST (NYSE: USW) and Frontier Corp. (NYSE: FRO), The Wall Street Journal reported. Qwest's board is scheduled to meet this morning to consider various options.

Little Rock, Arkansas-based telecommunications company Alltel Corp. (NYSE: AT) said it will acquire Kansas-based privately held communications firm Liberty Cellular Inc. for about $600 million in stock. Liberty Cellular offers wireless, paging, long-distance, and Internet services to 150,000 customers in Kansas.

Earnings to Go:

(Quarterly earnings per share versus that of the same year-earlier quarter and compared with analysts' mean estimate. Earnings exclude one-time charges and gains.)

Cyberian Outpost (Nasdaq: COOL) -- fiscal Q1 EPS: loss of $0.38 vs. loss of $0.69 last year; estimate: loss of $0.40

FSI International (Nasdaq: FSII) -- fiscal Q3 EPS: loss of $0.17 (before charge) vs. loss of $0.09 last year; estimate: loss of $0.17

Intraware (Nasdaq: ITRA) -- fiscal Q1 EPS: loss of $0.14 (before charge) vs. loss of $0.50 last year; estimate: loss of $0.25

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Yi-Hsin Chang (TMF Puck), Writer
Jennifer Silber (TMF Amused), Editor