Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: accountclosed who wrote (35914)	1/2/1999 8:44:00 AM
From: Haim R. Branisteanu	Read Replies (2) of 94695

Antoine, to better grasp the overvaluation of AOL is to calculate the number of shares outstanding per subscriber. Presently you have 458.1/14 = 32.75 shares per subscriber who generates an average of $25 per month in revenue or $500 a year. (including advertising and other fees) Revenue per share is $500/32.75 = 15 times, or as you mentioned $5075 per customer. Invariable how you calculate it at twice revenue, AOL should be priced at $25 to $30 to compare to other retailers at already lofty prices. If compared to CBS on revenue then AOL should get to the $40 range.. But as written on this tread so many time who cares about fundamentals <GG> BWDIK Haim Haim

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