America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: David S. Bye who wrote (36987)	1/10/2000 9:10:00 PM
From: SLSUSMA	Read Replies (2) of 41369

His math is off, but his idea is essential on the right track. TWX gets 1.5 shares of the new company, so based on today's close: If you take AOL's close of $72 5/8, then TWX should be worth $108 15/16. If you use TWX's close of $92 1/4, then AOL should be worth $61 1/2. As the dust settle the valuations will probably meet each other somewhere between the numbers. Therefore, for TWX shareholders, if AOL tanks tomorrow to $61 1/2, they are still getting their $92 1/4's worth. If AOL moves above $72 5/8, then TWX should move up as well. Either way, I would say TWX has more upward momentum and AOL has more downward pressure. Does anyone disagree with the analysis?

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