So if we multiply everything across the board, how much money will they be losing once they've reached 10B in revenues?
You've made my point--you've tried to justify AOL price and not once did you mention earnings. The fact that you left that out, whether intentionally or not, just shows how much of a mania AOL has become.
I sold my puts a few weeks ago and decided I would watch things for a little while. At the time I was hoping that AOL would move up a little while I was on the sidelines. . . This has been too good to be true. Let's see if we can get to $100 just for fun.
Here's a little something to spur all the "bigger idiots" buying this stock onward so that the rest of us can get into some puts a little cheaper--
1) Intel supplies, what, about 80% of the world's microprocessors, and let's see, how many people are there on the planet, how many own computers, wow, what a potential market, right? (same reasoning you used for your AOL arguments)
2) AOL is such a great company, it deserves as least 2 times the multiple accorded to Intel--afterall, who needs microprocessors when you've got a modem, right? Plus AOL has such a great earnings track record. . .
3) Let's see, Intel has a P/E of around 25. . .
4) AOL is just warning up, (potential, you see), so we can't use last year's earnings (oops, there weren't any earnings last year. . . What about this year's earnings--oops, AOL would only be worth about $3 if we did that--what about next year's earnings?--naw. . . that doesn't improve things much--let's get past this CompuServe thing--we'll use the projected 1999 earnings (that's not too far away, not much happens in the tech sector anyone, so projection only 2 years out should be OK).
5) Current 1999 estimates (high side) are around $1.50 (we'll give them the benefit of the doubt, after all, they've put together a pretty impressive earnings track record so far. . .)
6. That means that AOL is worth at least $75 dollars a share.
7. Hey wait a second, AOL is selling for over $90???? What's going on. . .
8. No problem let me work these numbers a little, I'll get back to ya. . .
9. OK. Let's assume AOL has 3 times the potential of Intel. . .
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