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

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To: Brad Rogers who wrote (2177)3/5/1997 11:38:00 PM
From: Harry Simpson   of 13594
 
Best of luck on your investment.

You seem to overstate the fundamentals when you say that AOL has a "monopoly on consumer online services." As access to the Internet quickly becomes a commodity business, how is AOL's business model going to generate the revenue needed to support it's present stock price? Advertising, you might say. Well, I don't see ad$ beating a significant path to AOL's doors, and the promise of the chat rooms may be just that, a promise. Do you consider how much 'other revenue' will have to generated in order to value this stock accordingly? Do the math, then consider how and when AOL can possibly get there.

The technicals you mention are a speculator's gallant hope that the horse he's riding will get him out of the wilderness before it collapses.

How long are you willing to hold on? 'Til 50 or 30? Or are you really long term? Are you an investor or a speculator?
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