Properties of the parent compound, LaMnO3 are greatly affected by strong Hund's coupling. Assuming the antiferromagnetic ordering (with a low Neel temperture) along one of the cubic axes, this coupling would result in formation of disconnected ferromagnetic layers. Furthermore, in the presence of the cooperative Jahn–Teller effect the compound becomes a band insulator. At small doping ( La 1-x Ca x MnO 3, x ≪ 1) the band insulator phase coexists with the presence of localized holes. An insulator-ferromagnetic metal transition occurs at the percolation point x c =0.16.