***Insiders are selling. President, CFO, Officer, and an affiliated
stockholder filed last week their intentions to sell 111,000 shares
at average price of $77.39:***
Just for fun I took the average forward P/Es of Coke, Dell, Intel, and Microsoft--I figured if AOL does everything right, everything goes their way and it starts raining dollar bills over their corporate headquarters, then they may deserve such a multiple--and then did a quick and dirty estimation of what they would need to earn. Based on this calculation, they need to earn about $2.18/share. Based on current projections, they should hit this number sometime during 2000-2001. So I propose a new method of valuing AOL--we can call it the days-until-fairly-valued, given a rosy earnings scenario, a perfect world, and the same multiple as Coke, etc. We'll call it the DUFV score--right now it stands at 1095 or at about three years.
Jeez. . . No wonder anybody with a brain is getting out of this thing. |
