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

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To: Joel Sternberg who wrote (1318)2/3/1997 3:13:00 AM
From: Curtis Philips   of 13594
 
<<I am not so sure you are right on this. At some point, AOL is going to have to go to the
public markets for more money. That point is probably sooner vs. later, especially if
customers demand the cash refunds. To make the next offering truly successful, and
thus endear themselves to the corporate community, the AOL underwriting syndicate
has to keep the price of the stock up.>>

Interesting analysis. Anyone know how much cash they have on hand? I wonder if underwriters will really go out on a limb for them, even given the money it puts in their pockets. I mean, don't they have some shred of financial integrity they need to maintain?? Or might they exact something from AOL for going out on that limb, like having them raise their price by $5 a month? To make them appear more fiscally responsible, like as if they actually had a business plan??
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