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

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To: Joe Gleason who wrote (454)10/30/1996 1:53:00 PM
From: Sam Citron   of 13594
 
Joe, have you taken a long position on stock or calls or simply sold your puts? I know Wall St. loves reorgs and writedowns. Too bad because it encourages these financial schenanigans. I do not, however, agree that recognition of these customer acquisition costs are going to solve all of AOL's problems. They simply gave in to the relentless criticism of their accounting policy. The policy is symptomatic of a company that uses overaggressive techniques to mask its problems. The question remains of whether AOL can still make any money facing a daunting array of competition including MSFT, which is really turning on the heat. In light of this, I would doubt that this stock would reach 50 again anytime soon. For that, they will have to report real profits and, IMHO that will be a long time off.
Good luck, Sam
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