America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: puborectalis who wrote (41287)	8/5/2002 7:08:52 AM
From: puborectalis	Read Replies (1) of 41369

We always admired the Time Warner assets at AOL Time Warner," Veaco says. "We valued the company at about 20 bucks a share even when the sell side had a much higher price target on the stock." But the company's well-documented problems -- from a merger that was flawed from the get-go to management turmoil to the expanding accounting probes -- created a buying opportunity. The stock is down 43% since the beginning of May. "At $12 a share, you weren't paying anything for AOL," he adds. "Below $10 a share [where the stock traded in late July] , it was too compelling to ignore." Veaco conceded that AOL Time Warner has to fix that sweeping array of problems and that it's difficult to get your arms around the AOL division's actual worth. The company needs to "articulate a clear strategy for its goals and direction, resolve the investigations into its accounting and simplify the corporate structure, particularly at Time Warner Entertainment." "I took the company's 10-K home one evening and decided to figure out the structure. I had to draw a flow chart. I think I stayed up until 4 in the morning."

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