I'm obviously in the minority here in that I like this deal! AOL and TWX are a perfect match. AOL accomplished everything it needed to do with this merger, in order to be the LEADING internet stock for the next decade. Sure, in the short term, we may not see 20 point QCOM rises, or may not rise another 150% this year, because valuations are obviously different. But who cares? AOL is not a traders dream but an investors one. When I invested in AOL a year ago, I did it because it has a very good chance to be THE leader in THE hottest sector of all time. AOL-TWX will take the internet into the next century. If you're looking for wild price swings go trade YHOO, CMGI, QCOM (which I hold a few shares of). You have to take a step back to take 2 steps forward. AOL and Case could sit tight and let free ISP, free DSL and all those other ISP's slowly take chunks out of AOL's revenue, or he could go out and find more broadband and content than AOL's knows what to do with. CEO's are hired to be pre-active...act before the others. Their taught not to jump into the latest trends, but to create them. I'm sure half of us have read the latest best selling book "Who Moved My Cheese?" I want to be the mouse that finds the new stash of cheese!
Keep a nice portion of your portfolio in AOL, and have an eye for THE future. Then take some money and trade your heart out with the other high flying net stocks.
I'll quote Scott Schoelzel (manager of the Janus 20 fund), "they've created the model media company for the next millennium."
I'm holding on to this one...for a while...a long while!
Nick
I feel like I just gave birth
:)
P.S. Who ever has access to thestreet.com, they cover the merger unbelievably. Most of them are very bullish too, including Cramer... |
