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Technology Stocks : America On-Line: will it survive ...?

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To: LordDarley who wrote (1561)2/7/1997 8:06:00 AM
From: Zoltan!   of 13594
 
The historical pattern of stocks like AOL, which has been propped up in anticipation and facilitation of a secondary, are illustrative. Within six months of a successful secondary such stocks, on average, are found with stock prices over 50% lower than the secondary price.

(MFers should remember IOM, a company with far stronger fundamentals than AOL, followed the pattern.)

That obviously is not a pleasant augury for LT owners of AOL.

BTW, if you are indeed a fan of cash flow analysis (which gives a far better picture of a company's business than "earnings", you should know that strongly negative numbers like AOL's indicate that the company is, in effect, liquidating itself.

Regards
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