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

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To: J.S. who wrote (4448)8/13/1997 10:19:00 AM
From: Andre Lukas   of 13594
 
The behavior of AOL is puzzling. Maybe it is running on the coattail of today's up market.

I have not seen anymore buy recommendation from the analysts. Usually after earnings report, analysts - who have herd mentality - join the flock for either upgrading or downgrading the stock. No big firm and influential has come forward like Merrill Lynch (maybe they learn their lesson about Boston Chicken) or Goldman Sachs (I respect Abbey Cohen's opinion).

AOL cannot keep doing robbing Peter (3Q) to pay Paul (4Q) accounting practices without making influential analysts feel comfortable (afterall they have their reputation at stake). Just remember, AOL has a negative working capital. They cannot pay short term bills on time. Hence Peter Paul (and very soon Mary - boy I love that group especially that song "Kissing sweeter than wine...").

BTW, Accumulation Distribution of AOL has dropped from "B" to "C" today.

JS I join you in thanking the Longs/Bulls for postings to keep us on our toes.

Andre
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