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Technology Stocks : America On-Line: will it survive ...?
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To: James F. Hopkins who wrote (3422)6/13/1997 3:07:00 AM
From: J.S.   of 13594
 
James,

You cited:

"A resent check shows AOL down from 8 milliom ( I doubt she ever had )
to claiming 6.2 million subscribers..( which I also have reason to
doubt )....she now has about a 5.8 Billion Market cap."

On the other hand, a source claims CompuServe is now above 6 Million
(I too am skeptical here). Actually, it's CompuServe Mexico which claims this. See

compuserve.com.mx

With a market cap of less than $1B, CSRV is certainly attractive.
I suspect, although I have no real info, that the $11 -$14 share bid by AOL for CSRV was not for the whole business, but just the online service. The network services division of CSRV is worth $10 to $12 a share by itself (Motley Fool and others) and Sprynet is worth at least $3 dollars a share or more given the recent buyouts of ISP's like DIGEX. In addition CSRV has $2/share in cash, no debt and is owed $1/share by its principal owner HRB. Then there is also the NiftyServe contract in Japan which extends to other parts of Asia.

The problem of course is CSRV has had management that did not
change with the times like AOL's has. Actually, CSRV's infrastructure
and technology and AOL's management and marketing might be a good mix.

The market has certainly told us which it values more.

Joe
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