America On-Line: will it survive ...? Message Board

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

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To: S. maltophilia who wrote (5010)	10/10/1997 11:06:00 AM
From: steve lipson	of 13594

Khalil: What on earth does MSFT need with cash? Intel, to name one of many in the high tech field, owns equity positions in a wide range of tech cos. so taking an equity interest in the buyer would be anything but unprecedented. As for this continued jabbering that analysts are only interested in obtaining underwriting business... that quality of reasoning has gotten bears where they are today -- deep in the red. Think about it for a half second: Only a few of the underwriters get the lead positions and the big fees. And existing investment banking relationships are changed fairly rarely. So a handful of analysts may have that motivation, but that leaves all the rest who could really make a name and a career for themselves by telling the "truth." And why would institutional investors (70-80% of AOL's holders) believe analysts who were manipulating the facts, thus risking losing billions for their clients and all the fat fees they get for that business. The biases and pressures that color analysts work do exist, but they are a bit more subtle than you give them credit for. Plus, these biases are well-known and fairly well discounted by investors.

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