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

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To: DrGamble who wrote (1892)2/25/1997 2:16:00 PM
From: steve lipson   of 13594
 
>>lawsuit news??? I can't believe my eyes...
Seem like this stock loves bad news....>>

A lot of people are bewildered about how news that hasn't happened can already be "in a stock." It's really quite natural. Your reaction to news often depends entirely upon the circumstances. For example, the news that I am going to push you is no big deal when we are sitting next to each other on a couch. If you happen to be on the roof of a 10-story building leaning out and looking down at the street, I imagine you'll panic at that same news.

All the news has been bad about AOL for months. The stock has lost half its value while a record bull market was in progress around it. Management missteps have conditioned all of us, even people like me who like the company's long-term prospects, to expect the worst. To a good contrarian that means we may just have a stock that has been pounded down about as far as it can go for awhile. If that's happened, then there's only one other direction for it to go. So it's not all that surprising for the stock to rise in response to some minor piece of good news, or no news, or some new piece of bad news that's just not much of a surprise considering all we've endured lately.
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