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: prakash who wrote (7774)	2/13/1998 8:49:00 AM
From: Pancho Villa	Read Replies (2) of 13594

Prakash and All IMO this is a must read post! >>Hot... Hot... Hot... Earnings warning from AOL....<< Good! IMO they are now scared! If they cooked the books [I Think they did - They can get away with it because they need to report correctly only in the 10K in which financial statements for a twelve month period get audited. Thus, Lot of things can be hidden under the rug in the unaudited quarters.] for the quarter by recognizing, for example, revenue ahead of time, the auditors will eventually catch up with them at the end of fiscal. Since [I hope] they will not be capable of faking revenue, the over reporting last quarter will show up as lower than normal revenue for the next two quarters. The same goes for costs, if they delayed recognition of some costs these will show up with a vengeance at the close of fiscal! IMO the reason why they came with the price increase and split announcement with so much noise a day before earnings is that they knew/thought earnings were not good, in particular if they knew what the real earnings would have been. I bet you they were extremely surprised with the market's reaction! IMO they are Bery Bery Bery scared! While you are at it, also read my latest on AOL at Reger's Message 3422814 Pancho

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