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

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To: James F. Hopkins who wrote (1141)1/21/1997 9:55:00 PM
From: Johnathan R. Bowden   of 13594
 
More good news for AOL lovers. www.earthlink.com also provides excellent service, you can also get a month free if you get the right promo disk. And I can always get on...

I am amazed that AOL's stock has held up so well so far, Pros & Cons:
1)Large subscriber base
2)Market leader & name brand recognition
3)Good for newbies

Cons:
1)Is not making money
2)Is burning through remaining cash awfully fast
3)HIGH marketing costs to build subscriber base.. to build up revenue
4)Unreliability...oops, gotta cut down on the subscriber growth
5)Can you say, "Lawsuit", sure you can!

As I recall about 3 months ago they rolled out this big road show to build up subscribers to stem their negative cash flow. I do not see their cash flow situation improving, and their subscriber growth has stopped (they have not said so yet, but I'm hearing too many stories of AOLers cancelling).

In conclusion:
It is going to be very bloody for AOL shareholders. I am short on this stock.

Regards, John
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