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

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To: grogger who wrote (99)9/8/1996 8:02:00 AM
From: Stratajema   of 13594
 
I suspect AOL will announce their new pricing structure within the next 8 weeks. AOL has said this pricing structure is needed to slow the defection of subscribers to far less costly ISPs. In any case AOL will need to charge far less then they are now which will reduce their revenue and net income if they can not increase the number of users.

I suspect that AOL stock will climb back into the $30s after a formal announcement and so in my opinion this would be the best time for you to probably get out of this stock. On the next run-up I'll be shorting this stock because no company can survive by having a strategy that goes against or does not fully align with a technology trend or with what customers want. (eg. proprietary PCs of the 1980's) An article on CNET.com remarked how AOL is alone in their strategy and how Compuserve and Prodigy are going to pursue a different internet alignment strategy.

THANKS for reading this post..just thought you would like to hear about the sizeable downside risk of AOL stock ownership. I'm not infallible in my opinions but my research has always helped me to see trends before Wall Street wakes up.
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