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

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To: Steven Angelil who wrote (432)10/29/1996 7:33:00 PM
From: Mark The Trader   of 13594
 
Steve,

Aol's new pricing plan is very good , however they still have lousy Internet access, and will never be able to compete with local ISP's in that area. Revenues will not increase enough to make up for the expense that will be recognized now that they will not amortize marketing costs, plus a large part of the revenue that AOL used to report came from the $ 2.95 am hour that subscribers would pay when they exceeded the standard monthly hours . This will obviously impact the bottom line immediately. At least now AOL has bagged the bullshit accounting for expense and revenue recognition , so a true picture of how AOL is doing will become evident. I think you will see quite a few downgrades as soon as Analysts figure out that AOL will not meet the lofty margins that Wall Street has generously given this stock.
I say the stock is worth maybe $ 15 .

Mark
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