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Technology Stocks : America On-Line (AOL)

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To: 10K a day who wrote (40416)	11/30/2000 11:34:34 AM
From: Jim Lamb	Read Replies (2) of 41369

AOL Dive Seen As Buying Opportunity NEW YORK (Reuters) - Chase H&Q analysts Mark May and Paul Noglows said on Thursday the recent sell-off in America Online Inc. (NYSE:AOL - news) represents a buying opportunity. In a research note, the analysts reiterated their buy on the world's largest Internet service provider, whose merger with media giant Time Warner Inc. (NYSE:TWX - news) is still awaiting regulatory approval. The regulatory process has seen its share of delays and AOL and Time Warner executives pushed back their timeline for closing the deal last week to as late as early 2001 after earlier assurances it would close this fall. Dulles, Va.-based AOL's shares have fallen 20 percent since early October and the value of its deal with Time Warner has shrunk to about $97 billion from $164 billion when it was struck in January. Shares of AOL were last off more than 6 percent at $40.50, hovering near their 52-week low of $37.25. Shares of Time Warner were off nearly 6 percent at $60.58, off their 52-week low of $57.51. The analysts attributed the sell-off to concerns over the advertising environment and uncertainty regarding regulatory approval of the merger as well as the impact of possible concessions on the merged firm's long-term financial and competitive positioning. May and Noglows said they believe there is an 80 percent chance the Federal Trade Commission will return a favorable ruling regarding the merger within the next week or so and a 90 percent or better chance the deal will close in the December quarter. ``At $43 per share, we believe AOL shares are poised to rebound on a favorable ruling,'' the analysts said.

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