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

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To: Thomas C. Donald who wrote (3904)7/9/1997 11:09:00 PM
From: Kenneth Tse   of 13594
 
I have reading most of the posts on this thread for some time and tend to agree with most of the analysis. Bear Side. AOL has certain been a stock, not a company, that has been doing well. Frustrations are an understatement for those who follow it short and fundementally. I don't know when the stock will break as it seems that the institutional support and the Oakes/Cohen REITERATE SAGA ceases to end. However, the wild trading patterns on the stock are a clear indication that many people are playing with the stock in a big way.
I would like to know how many people are involved in the scam. $7 billion dollars plus for this company that has not proven to make any money. Valuations are beyond stretched for any forseeable future profit potential and don't think Case doesn't know this. Check out insider sales, not only his and the executives, but he sold for his kids as well.

As I ramble, the only reason I can guess why all these firms have buy ratings is that they are coming from investment banking driven firms.
They know AOL needs cash and their jockeying for positions to do the underwriting. Doesn't take a rocket scientist to figure this one out.
I am surprised at the lack of integrity of so called quants and analytical research departments.

It'll be interesting to see what kind of media circus AOL will run around earnings time. Remember all, all these marketing deals are for up-fronts commissions on future transactions. AOL has yet to realize any costs of running these programs or better, have not proven that retailing via the internet is economically feasible. I think there will be lawsuit in the future about these up-front fees when they, the idiots Tel-Save, 1-800-Flowers etc. realize that they made a gigantic mistake. Besides if I want to send flowers to some why not call on the telephone. They gave us the number and its' toll free!
Ken
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