Fool Portfolio Report
Tuesday, March 12, 1996

by Keith Pelczarski (MF Czar)

ALEXANDRIA, Va. Mar. 12 -- Another monster day for the Fool Portfolio. The big news, obviously, is that America Online announced deals today with Microsoft (NASDAQ: MSFT) and Sun Microsystems (SUNW). The news from the Redmond Front is that AMER will be integrating the Microsoft Internet Explorer in the next version of AOL. Microsoft, in turn, has licensed the Explorer from Spyglass (NASDAQ: SPYG). As part of the deal, there will be an AOL icon bundled on the Windows95 desktop. Ironic when one considers that within the past year AMER was ready to take MSFT to court over Win95.

Contrary to what this Fool assumed in yesterday's recap, Netscape's Navigator will only be *available* with AOL, not integrated. I'm curious to see exactly what this really means, since I'm already using Netscape's Navigator with AOL. On the upside for AMER stock, there will be a prominent AOL icon on Netscape's home page, the most frequently visited page on the web.

The other item announced today was that AOL would license Java technology from Sun Microsystems. That can only mean that we'll be getting a lot more animated content and other nifty feats of online legerdemain with the addition of Java applets.

These announcements, on the tails of yesterday's three releases, powered AMER to an astounding 15% gain, up $7 3/8 to close at $55 1/2 on the bid side.

These new partnerships come on the heels of a flurry of announcements yesterday, when AMER announced that it had agreed to alliances with Netscape, AT&T's WorldNet, and Ziff-Davis. In the recent past, AMER has also formed strategic partnerships with Apple and Hewlett-Packard.

With all these partnerships being formed, my daydream of being the first Fool to go over Niagara Falls in a barrel was replaced by the daydream of open standards everywhere, and seamless integration between AOL and the web. As an incorrigible web wayfarer, I'd be much happier if AOL would grab a helmet and get in the game out there by at least smudging the boundaries between AOL's service and the WWW a little better. Right now, it's like going from Kansas to Oz, and I think there's a much better middle ground in the future.

More on the MSFT/AMER and SUNW/AMER deals can be found in today's special in the main MF listbox. Other recent announcements were covered in yesterday's special, which can be found in the "Past Special Sections" area at the very bottom of the Fool's main listbox.

From the Dow Jones Newswire today, we find an interesting tidbit on Iomega, specifically the Iomega message board here in The Motley Fool.

In brief, the article made a pretty even-handed assessment of the investment message board phenomenon in general, with some specific highlights and low-lights from the IOMG board to illustrate the good *and* bad that can come from such a free-wheeling exchange of information.

The reporter for the story, Carmen Fleetwood (IOMG fans will remember Carmen from last summer), compared IOMG board followers to Deadheads. I wonder if there will be hackey-sacks, falafel stands, and tie-dyed i-shirts in Roy, Utah for the Iomega annual meeting.

The wire quoted Fools Art538, CynicalGuy, and Amatuli, all in a favorable light, but it also mentioned the nasty habit that some IOMG followers have of breaking out the flame-o-matic when any member of the media has a discouraging word regarding their precious stuff maker. It saddens me to see such reports in the news, because it reflects badly on Fools of all stripes, not just the IOMG discussion participants. Feel free to disagree with the media, and to contact them regarding your disagreement, but please be courteous, and avoid personal attacks and insults -- they only hurt what may otherwise be a perfectly valid argument. For more on this, please read the Fool's Rules. They can be found under the Meet the Fools heading under the Eight Steps to Enjoying Fooldom.

In closing, I'd like to thank all of you out there who have upheld the Foolish standard, and managed to thump the Wise with a smile on your face and a "So sorry, old chum." Isn't that what Folly is really about?

Today's Moves

AMER +7 3/8
AMAT -1 1/4
CHV - 7/8
GE -1 1/2
GPS + 3/4
IOMG + 1/8
KLAC - 1/4
S + 3/4

Today's Numbers

Day Month Year History FOOL +4.49% 3.06% 17.95% 120.24% S&P 500 -0.39% -0.52% 3.44% 38.98% NASDAQ -0.56% -2.45% 1.99% 49.00% Rec'd # Security In At Now Change 8/5/94 680 AmOnline 7.27 55.50 663.11% 5/17/95 1005 Iomega Cor 5.04 17.63 249.85% 4/20/95 155 The Gap 32.55 55.75 71.27% 8/5/94 165 Sears 28.93 49.25 70.27% 8/11/95 95 GenElec 57.91 75.00 29.50% 8/11/95 110 Chevron 49.00 53.75 9.69% 1/29/96 250 Medicis Ph 27.86 26.38 -5.33% 8/24/95 100 AppldMatl 57.52 32.63 -43.29% 8/24/95 130 KLA Instrm 44.71 22.00 -50.80% Rec'd # Security Cost Value Change 8/5/94 680 AmOnline 4945.56 37740.00 $32794.44 8/24/95 100 AppldMatl 5752.49 3262.50 -$2489.99 5/17/95 1005 Iomega Cor 5063.13 17713.13 $12650.00 4/20/95 155 The Gap 5045.25 8641.25 $3596.00 8/5/94 165 Sears 4772.65 8126.25 $3353.60 8/11/95 95 GenElec 5501.87 7125.00 $1623.13 8/11/95 110 Chevron 5389.99 5912.50 $522.51 1/29/96 250 Medicis Ph 6964.99 6593.75 -$371.24 8/24/95 130 KLA Instrm 5812.49 2860.00 -$2952.49 CASH $12147.13 TOTAL $110121.51