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: Jeff Mills who wrote (7248)	2/9/1998 6:35:00 PM
From: Pancho Villa	Read Replies (1) of 13594

>>With 300k authorized and only 102k out now, AOL could do a 2-for-1, 5-for-2, or even 3-for-2 split.<< An accountant please help me out! I believe the split is a paper transaction that can be done regardless of the outstanding/authorized ratio. What the Authorized - outstanding number means is the number of shares that could be sold in the market to raise capital without an stockholders vote. >>It would not surprise me one bit to see some split announcement within 24 hrs<< Several people have told me they will announce split along with earnings. However, IMO the academic view on the meaning of stock splits applies here. Academic studies indicate it is growth prospects and not the split itself what pushes the price ahead. What happens usually is that the price has gone up as a result of past and future expected earnings. IMO this does not apply to AOL, IMO the stock has gone up on hype not on real [ernings] growth. Pancho PS: I apologize and respect the opinion of those who think there is a legit reason behind AOL's price move. BTW: anyone familiar with the convertible debt? the latest $500 million issued last fall. Can they call it already?

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