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

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To: yard_man who wrote (3482)6/20/1997 3:16:00 PM
From: steve lipson   of 13594
 
>While the overall trend is up I'm still ahead having
only played the short side....>

It's a happy state of affairs, then, that we've both made money.

While the chart may make AOL look like a good short candidate, my view is more tilted to the fundamental side of the equation. This is a company that has shown a lot of resiliencey to manage through some near-death PR and service crises. It has shown an ability to land marketing deals worth 8- and 9-figures. No way to tell when the next one of those is coming to levitate the stock, whether you look at a 3- 5- or 10-year chart, on-balance volume, moving averages or stochastics. And those Disney buyout rumors could resurface at any time. Mark down that you heard it here first: I think Va. neighbor MCI with its BT deep pockets would make an excellent buyer. Don't think that some aggressive investment bankers haven't thought of that, too, and at least tried to plant the seed.

As for bad news that could drive the stock down... what on earth do you expect to hear in the next 12 months to top all the things we've seen in the previous year.
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