AOL is a value stock - imo - because it trades for what the value of Time-Warner alone is worth. However, I base that statement on my guess and media reporting of what "analysts" have calculated Time-Warner to be worth ($15+/sh). Maybe the calculations are right, maybe not.
In today's environment with all the shenanigans and bankruptcies, I'm cautiously stating my opinion which is: given the assets that AOL has - music, cable, cable networks, publishing, movies -- it is hard to imagine Time-Warner not being around ten years from now.
So I bet that given some time, the stock will recover as the business muddles on, cash flows continue, management gets lucky/smart and makes some positive strategic business decisions, "entertainment/leisure" stocks come back into favor, or some combination of it all.
--------------
I added last to my position at $11. If stock drops further, I'll add more.
Paul Senior, who
has been wrong many, many times
(as his investment in this stock appears to prove) |
