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

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To: Sam who wrote (9540)4/16/1998 5:21:00 PM
From: Mike C   of 13594
 
Excellent post Sam - just the numbers I was looking for.
This additional information throws a little water on my analysis
of member increases or lack thereof. As you may suspect my model of
a decrease in stock price is based upon market realization that
membership numbers can not increase forever and may even begin to decrease as users see other avenues to access the web. The table you provided indicates substantial variation in the number of days to reach the next million members.I may be reading a bounce as a trend.

For those who are interested:
Last 3 reporting periods - Days to 1 million increase:
75, 64, 86.

Time to 1st million - 736 days
Average time between million members - 83 days
Increase is fairly linear save for early 1997 when connection problems
occured and peaks near Christmas. Average days to 1 million increase along the best straight line through the data - 122 days.
By the way, there is reasonable correlation between rate of stock increase and rate of member increase. If it takes more than 90
days to reach the next million she could be in trouble, less than 60
days stock could continue trend IMO.

Mike C
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