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To: Jenna who wrote (13132)	8/18/1998 2:50:00 PM
From: Jurgen	Respond to of 120523

Jenna, what happened to AEOS - the eagle is coming down big time, can't find news Jurgen

To: Jenna who wrote (13132)	8/18/1998 3:13:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

e-mail: AEOS, MDT, AVEI, APOL... AEOS with earnings expected at 515% increase this quarter and same store increase over 30%, it looks like something else is brewing here. There was insider selling this week, and I'm starting to think that September 50's could be the order of the day. From Sunday's Washington Post: Abercrombie & Fitch, the super-hot collegiate retailer, claimed in a lawsuit in June that its arch rival, American Eagle Outfitters, has illegally copied its clothes, its look, its image and its marketing, confusing customers and hurting Abercrombie's profits. It has hired among the best-known intellectual-property lawyers in the country, requested a jury trial and asked for triple damages. "Subsequent to the Abercrombie Brand and [look] becoming favorably known to the public and trade, American deliberately and intentionally developed a [look] for the American Brand . . . which is substantially and confusingly similar to the Abercrombie [look]," the company wrote in its complaint. Abercrombie attached to the complaint numerous examples of clothes and logos from the two chains that look strikingly similar. It also included an internal American Eagle document in which the chain's store managers are asked to "Tell Us What Abercrombie & Fitch is Marketing!!!" The form tells store managers to go to the nearest Abercrombie store each week and describe it in detail, including what's displayed in the windows, what's on the main display table and what its signs say. American Eagle said it will "vigorously defend" the lawsuit, which it called "meritless, frivolous and bordering on ridiculous." But if Abercrombie prevails in court, its argument could have a lasting effect on the ability of retail chains to do what they've always done -- imitate one another. Fashion retailers in particular are like lemmings, with dozens of chains rushing to replicate a look or style as soon as it becomes popular, ultimately saturating the marketplace and killing the trend. If the court finds that American Eagle deliberately co-opted Abercrombie's look and violated trademark law in doing so, retailers would have to think hard before imitating anyone in the future, and that could lead to greater innovation and creativity in the industry. But the question facing the court in this case is a murky one: Even if American Eagle did copy Abercrombie's styles, is that illegal? Or was the company just exercising its own fashion judgment based on what it saw succeeding in the marketplace? "To the extent that retailing is a totally public business, whatever a retailer does is immediately visible and adaptable by everybody else," said Kurt Barnard, president of Barnard's Retail Trend Report and a longtime industry consultant. "This is what the world of competition basically is all about." But some lawyers in the field say the law may not be as forgiving as the industry, and they warn that a jury -- a panel of consumers -- could have a different take on when imitation is acceptable and when it has gone too far. "If [Abercrombie] can show that consumers associate that particular look and feel to them, and that American Eagle's store is likely to cause confusion, then they will prevail," said Washington intellectual-property lawyer Mark Sommers. "I don't for one minute think Abercrombie & Fitch's claim is without merit." AVEI, MDT...I've gone long these two for about 3 weeks now. I'm very bullish on these companies. MDT I'm also in 60's options as well as the stock. I think they are the best representatives of their sectors. Lots of good words on both of them in the last 2 editions of Barron's. APOL.. was an earnings play and this came out today: Hughes Network Systems and Apollo Group, Inc. Form Worldwide Distance Learning Company One Touch Systems Acquired as Foundation of New Company GERMANTOWN, MD--(BUSINESS WIRE)--Aug. 18, 1998--Hughes Network Systems (HNS) and Apollo Group, Inc. (Nasdaq:APOL - news) today announced an agreement to form a worldwide, distance-learning company. APOL technicals: I had 38 1/8 as a 'buy' signal but I'm now into the internets big time today nor did I think it would be up that much today. Looked like the trend was about to reverse.