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

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To: sohony who wrote (190)9/29/1996 11:34:00 PM
From: grogger   of 13594
 
Nigel,
Hopefully the announcements for AOL will benefit the stock.

I still believe though that uncertainty is something that contributtes to High P/E ratios - whether or not it should or shouldn't be. Look at NSCP. One moment they look great, the other moment they look like MSFT may put them out of business. WHen you have new, emerging technologies many investors bid up companies based on the "unknown" and what they hope will happen (sometimes for the good, sometimes for the bad). The high growth is also a factor of high P/E's but the uncertainty is also a factor. With the internet nobody can look back on history to see if the high P/E's justify the future outlook. You can't tell me that anybody is certain about the future of these companies. I like what I see with AOL and some of their prospects, but then again everything can turn around for the negative. I happen to believe that they have a good position in the market, and that they can make a "ton" of money. Only time will tell. I believe that their management is good enough to be able to weather the changes.

Rob G
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