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

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To: Harry Larson who wrote (5049)10/15/1997 11:23:00 AM
From: Brent D. Beal   of 13594
 
I totally agree on the upgrade. I've had a change of heart and now sincerely believe that AOL deserves a P/E at least 10 times greater than INTC. After all, where's the potential at INTC, all they do is make 90% of the world's computer chips? Much more potential AOL. Earnings? --Shoot, INTC is only going to make about 7 billion this year--what a dog of a company! Since INTC has a P/E of about 25, let's see, if AOL is going to make $.80 in '98, P/E of 25, multiply by a factor of 10, let's see, that's a target price of $200 a share. Looks like a screaming buy to me.

Of course, assuming that AOL is in the same class as INTC and therefore deserves the same P/E, the stock is worth only $20, but let's not talk about that.
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