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Technology Stocks : America On-Line (AOL)

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To: Tunica Albuginea who wrote (22620)6/16/1999 2:59:00 PM
From: Steeny  Read Replies (4) of 41369
 
Agreed with your points except:
1> I am 60-40 on a raise. The hawks want their 25 back. Don't really feel like going into detail. I think you know.

2. I disagree strongly about AOL Europe. It is by far the weakest part of AOL. They are not leaders in Europe and they have been bumbling over there from the get-go(just the name AOL reeks of a lack of European understanding). Merrill warned about this last week.

AOL is a good buy if you think the high PE dump is over. It's not a question of whether AOL is solid or not. It is a question of whether the mkt can tolerate AOL this far ahead of itself. I am not convincd the mkt can tolerate these PEs for an industry that is growing at about double the rate of MSFT, yet 5x the PE.

TA, it's a judgment call. This is the most prolonged selling we have ever seen in AOL for several years. IMO, AOL doesn't charge back to 150. However, I'm a technical trader and a close above 120 on good volume may cause me to reconsider.
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