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

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To: steve lipson who wrote (5354)10/30/1997 1:58:00 PM
From: Brent D. Beal  Read Replies (3) of 13594
 
**** >I think you'd have to be a serious moron to conclude that AOL is even half the
company that INTC is.<

Brent, at last we agree. AOL is not even a tenth of the company that INTC is. Look
at the market cap investors have given both companies.

I guess that means you see some substantial upside as AOL would have to go up to
$300 or $400 a share to approach being half the company that INTC is.
***

You misunderstood my comparison, AOL isn't 1/2 the company INTC is on a per share basis--hell if we're comparing net earnings, then AOL isn't even a pimple on Intel's butt. This makes my point all the better--any moron that attempts to argue that AOL is at all fairly valued has to rely some sort of ridiculous evaluation of potential, but the fact is, that on a per share basis, right now INTC is earning more than AOL will ever earn (OK, maybe with an extremely rosy scenario, AOL might be up to $4 a share about 50 years from now). So, why, on a per share basis (which is the only way stocks are sold), is AOL selling for the equivalent of INTC--I'll help you out. . . it has to do with tulips and bigger idiots.
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