Sonny:
I still feel the open access issue is impeding AOL and will continue to be a stumbling block, at least temporarily. While I do not believe high speed access via cable is, by any means, critical to AOL, given the alternatives, apparently many investors still feel that way.
I continue to believe AOL will come to terms with T/ATHM, and soon.
T is facing a ground swell of problems relating to the open access issue. Now, Cambridge, Mass. has joined the growing ranks of municipalities in favor of open access, following the lead of Portland and Broward County. An ATHM shareholder has recently commenced a derivative suit against T. GTE has filed an anti-trust suit against T. The list continues to grow. And it's all related to the problem over open access.
The fact of the matter is, IMHO, even if T should prevail on appeal in connection with the Portland mandate, ultimately, the FCC can step in and resolve the open access issue. I wouldn't be surprised if this happens.
I think T is incurring a lot of negative sentiment as a result of its staunch position on open access, and deservedly so. T would do well to come off its position regarding open access, make peace, lick its wounds, and move on.
I also expect AOL to announce a split, probably at, or shortly after, the shareholders' meeting.
So, IMHO, with open access and a stock split, it will be a very merry Christmas for AOL and its shareholders.
I agree with Henry Blodget of Merrill Lynch, who recently said:
We have a price target of $150 on AOL. This is a very sentiment driven stock, so if people really get excited about it, it could clearly go higher than that before the end of the year.
Best,
Tecinvestor |
