Claude...
I enjoy your posts. I can't say if I work for AOL or not, but you can be the judge on that. Currently I work in the field of taxation and accounting, but I enjoy working with computers and am pursing a masters in information systems.
I enjoy this bearish thread, and I do feel that some bulls should post opposite views. Always good to hear both sides before making an investment decision.
As for AOL and earnings...timing adjustments. Yes, the ugly monster reared its head again. Reason - SEC advised that charges made for information provider payments and Tel-Save revenue should be realized in different periods. $25 million for info payments, and spread the $12 million from Tel-Save. SEC is flexing its muscle and marking its territory; AOL is complying and finally getting accounting issues out of the way. Now the focus is on growing the business.
Can't make light of the adjustments. But they are, simply, timing adjustments. It does not impact the operating momentum that AOL has. All the reiterated buys, strong buys, etc. from analysts - they recognize this fact and focus on the growth of the business.
As for growth....
Revenues climed to $476 million, driven by a three-fold increase from non-subscription sources. All this while keeping marketing expenses in line, below most analysts figures.
More than 600,000 new members. Oh, and for that post a few days ago that said "I know someone in AOL accounting and he said no way over 8 million subs...," I say please tell your friend to recheck his calculator...it is not working. So, over 8.6 million subs and counting to 10 million by year end.
ANS is growing internationally, on track for 1 million int. subs.
More major advertising and commerce deals are in the pipeline...should boost the stock.
In the latest quarter, AOL realized the best retention rate it has seen in two years. Continuing to improve...
All in all it was a great quarter, despite the timing adjustments. One should realize that to short AOL, you better have a nimble trading finger. Buy puts instead if you want to go that route. The stock is stabilizing...just waiting for the next big announcement to push the stock up, and some short covering to boot.
Happy investing everyone.
S.
P.S. Article on AOL in SmartMoney magazine this month. Enjoy. |
