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

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To: Thomas C. Donald who wrote (4365)8/8/1997 12:11:00 PM
From: Andre Lukas   of 13594
 
Tom:

Steve Case is a super salesman. He can sell sand to the Saudis. As such CNBC buys his presentation without further analysis. If you read Motley Fool's recap of the conference call, you might think that AOL is the next Microsoft with rosy future earnings.

Unfortunately, AOL concept is building customer membership at any cost. For every subscriber of unlimited access, they lose $ 1/month. But Case will say: yeah, we make it up in volume. Wall Street buys it. Incredible!

Paraphrasing the Bible (don't know which scripture it is), "you don't build a house on sand, but on a rock". AOL foundation is sand, and as I said, Case can sell that sand to the Saudis.

How are they going to pay the bills if Current Assests are way below Current Liabilities?

To all LONGS: If you feel that AOL stock has rosy future as those fools on Motley stated, buy it at current level of 70+. Put your money where you thinking is.

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