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Technology Stocks : America On-Line: will it survive ...?

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To: Guy E. Fleming who wrote (3281)5/31/1997 4:28:00 PM
From: James F. Hopkins   of 13594
 
Hi Guy ; RE>At $19.95/month versus the typical area cable bill
of $40-$60/month, and here, about $125/month electrical utility,
it's a pretty good deal! <<<
The flaw in this is, ( even if it is considered a good deal, and
it's not , but for the sake of debate lets say it is a good deal),
even if that idea makes me want to choke, I'l go from that point
of view..the BOTTOM line is..at 19.95 a month because of the
way AOL is set up..there is no profit margin..
The making money off adds, "if it becomes profitable" it will
never have that much profit to justify this market cap on the stock.
AOL has to pull rabits out of a hat, and cook the books to show
a profit..look at her assest value ..her book value has gone to
less than zero..all the subsibers in the world getting a "good
deal" can't help AOL if she is losing money on each and every one
the more she gets the more she loses...sooner or later some one
is going to wise up. A great big wooping 2 cents..that came not
from ISP servise or adds, but from a one time "wind fall" payment
tel-save made to try to sell LD to AOL users..<G>
Will Tel-sav save the day, it seems to have done that..but will
it save her next time, or next..I don't see it..Tel-sav is to
much like a ponzi scam itself..will you buy long distance service
from them..are people beating down the doors to sign with tel-save
if so where are the drum rolls, surly AOL would trump this
with much fan fare. Ah going to Japan..with a big splash..
Japs are going to clean her plate over there..kiss her and wine
her and all the trimings..( but they will also eat her lunch )
she has got no idea of how business works in Japan and Steve
will get his cherry busted for sure..you think they let her in
and they did not see how to pluck her, you got to be kidding.
So much for the good deal..it's no good if it makes for negitive
profit margins.
Jim
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