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Technology Stocks : America On-Line: will it survive ...?
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To: John Howell who wrote (1497)2/6/1997 10:57:00 PM
From: (Bob) Zumbrunnen   of 13594
 
Not at all worried at this point. The general public has been fooled despite lawyers beating on desks. They won't ignore the bean counters so quickly, I would think. This is one *hideous* looking report, at a glance. Can't wait to look at it more closely.

At first blush, it appears this company is hemorraghing <sp?> money at an amazing rate. With no end in sight. If they had no charges, they would've had $93 mil available for marketing and profit. Not sure what "Write-off of deferred subscriber acquisition costs" actually means, but they took a huge hit for it in 1Q 97. If this is what I suspect it is (one-time write off of money that's actually going out continually), and it'll actually be spent over 4 quarters, we'd be looking at real figures of zero available before they even advertised or took the charges.

I'm no accountant or analyst. Can't wait to see what the pros think of this. Well, the pros who aren't holding a lot of shares of AOL, anyway.

One last question for any bean counters out there: Am I understanding the total shareholder's equity correctly? (next to last line). If so, are they saying the company would be worth 40 cents per share if liquidated? I don't expect a service company to have a whole lot of assets, but this number really looks low to me. Is it?
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