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Strategies & Market Trends : Join stock club--Tang Fund

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To: Arthur Tang who wrote (111)1/18/2000 7:15:00 AM
From: Arthur Tang  Read Replies (2) of 145
 
AOL continues to be overbought at Salomon, smaith barney. The downward pressure continues.
Merger with Time Warner will effect the AOL bulletin board as a system. ISP whether free or not, can not compete with a community using BBS. The content, portal, and size of the community is the continued effort of AOL to grow and prosper. Where as the ISP is loosely organized by several portals. The fact that you have to dig out any info on the net by yourselves, gives an organized effort by AOL an advantage that people will pay for the service.
This stock is a hold for the first half, until overbought is eased. For the second half, the pent up demand will repeat 1999 chart.
Morgan Stanley and Salomon will be pitted against each other for the benefit of their clientele. This could turn out to be a rubber baron fight until Salomon(hedge of 12,000 options pointed out they shorted 1.2 million shares) lost their shirt. Unless Salomon will cover the shorts by buyout some insiders, who are still too early to convinced to sell at this low price.
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