America On-Line: will it survive ...? Message Board

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

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To: Ramsey Su who wrote (1603)	2/10/1997 10:40:00 PM
From: Art Stone	of 13594

Anyone knows what type of credit facilities AOL has in place to finance operations for the next few months? AOL's 10-Q/K barely mentions this topic. AOL has lots of leases in place, but very little borrowed money or indication of a credit line. AOL's ongoing operations were always funded by selling more stock, which was great so long as the value of the stock kept going up. (Some of AOL's acquisitions seemed to be high-tech stocks with no real product, but cash in the bank) AOL is "renting" 50,000 modems for roughly $100/month each. If I were US Robotics, saw less than $40 million in stockholder equity, a negative working captial approaching $200 million -before- the decision to spend an additional $350 million to expand capacity, and the company saying that they expect to still lose money in the 3rd quarter, and a really optimistic number on the settlement of the busy refund/credit - would you require AOL to pay COD, or structure the deal so that title to the modems never even remotely gets close to AOL? I would.

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