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

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To: Cynic 2005 who wrote (4231)8/1/1997 4:54:00 PM
From: J.S.   of 13594
 
Mohan,

I was just about to write to congratulate you when AOL fell off
an 1/8 in after hour (after 4) trading to close at 70.5. Only
a "jump" of 4.44% not the 5% you promised. At 70.625 the increase
would have been your 5% when rounded. Sorry. Close but no cigar. Better luck next time!

Seriously, I think that the fact that AOL will make a small profit
is already reflected in the price. Information such as retention
rates and transaction fees revenues will probably signal the direction
of AOL rather then EPS. I expect a correction either right before
earnings or afterwards unless AOL reports really good news. The
volume in any case has been relatively light lately. I don't
think the big money has voted yet and I really don't see anyone
expecting huge returns on AOL stock anytime soon. That's the telling
factor. No one can deny that buying AOL at this price is hardly
safe on fundamentals. One should expect a big reward for being able
to see some value here. I'd feel
safer in a penny stock where I would have a chance to make a fivefold
profit in a few years. Does anyone expect AOL to do anything like
that in the next few years? I think not.

Joe
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