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

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To: Brian K Crawford who wrote (1703)2/13/1997 8:03:00 AM
From: Zoltan!   of 13594
 
>>"The news is out". Apparently the New York Times (today's) wants people to understand the depths of AOLs problems.

Market Place: "WALL STREET QUESTIONS AMERICA ONLINE'S FUTURE"
(for full story see)
nytimes.com

"Today, the company's current liabilities dwarf its cash, accounts
receivable and other current assets. "The key issue for America Online is cash flow," said David Simons, managing director of Digital Video Investments, a New York research adviser to institutional investors.
"America Online is running out of cash."

- As I've been saying for some time.

NYT also includes that telling quote from Morgan Stanley's recent downgrade of AOL:

"AOL is a company with a split personality -- it always does good stuff and bad stuff." She added: "The good news: Our instincts tell us that AOL is on the cusp of breaking out with a profitable business model (after years of building) and that the stock price (after a lapse or two) should continue its recent steady climb. The bad news: The numbers tell us we are wrong."

- Wanna bet AOL is gonna change their business "model" again? Rumors are of "tiered" access, giving "unlimited access" another, even more limited, definition.

Regards
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