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: Zoltan! who wrote (2537)	3/23/1997 12:19:00 PM
From: James F. Hopkins	of 13594

Hi Duncan: When they had the hr rate they had many people paying up in the hundreds of dollars a month..still they could not take in enough money to show a real profit and had to cook the books, The all you can eat was done as a last resort to raise some quick cash..AOL and it's sub..lease bandwidth..they would have you belive they own the network..they make missleading statments to that effect..in all their upgrade the network spam..it's not true they own servers and pops..but rent bandwidth..it's true they have long term lease agreements that can not be cancled, ( except there is a IF clause, an that has to do with payments ) they are facing a cash shortage..and IMHO..don't know how they are going to make the rent payments..this is the reason they have reniged on other payments..when that bandwidth rent gets over due by so much, they go belly up..they don't want any of that out. AOl last pitch will be to make a secondary stock offering, ( that will dilute the shares out standing and cause a drop in the stock price but will bring them enough money to live a little longer. I doubt the little share holder has even looked at the warrents AOL issued on the ANS part of their biz..that in effect killed all book value on the common stock..when AOL turns belly up it will come as a big shock..and there will be a lot of spins put on it..but the smaller share holder will take it on the chin really bad..he will be the last one to have a chance to exit, and after the bad news is released,. by the time he gets that chance, the stock will be worth about what Centennual Stock is, you should see the insider report on that stock..how all the rats sold off before the crash..but even that is not released untill after the damage is done..thoes kind of people belong in jail..but that's the system. Justice for sale to the highest bidder.. cu l8r Jim

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