America On-Line: will it survive ...? Message Board

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

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To: grogger who wrote (109)	9/10/1996 5:10:00 AM
From: Zoltan!	of 13594

Yes, see "AOL faces crippling cash shortage" at usatoday.com Also, I believe it's becoming clearer to the market that all of AOL's reported "profits" come from capitalizing marketing costs rather than expensing them. >>>What's new to me is that all reported gains in EPS this fiscal year comes from a change in the amortization schedule of deferred marketing costs to 24 months from 12 months during the previous fiscal year. So while we knew that AOL's "profits" were not real, we now learn that the supposed "increase" in profits during last quarter was also due solely to accounting manipulation. Seidman's Online Newsletter at techweb.cmp.com highlights many other factors in AMER's deteriorating condition such as: -AOL actually spent $40,000,000 more marketing dollars last quarter over same period 1995 to acquire 300,000 fewer accounts and -AOL management is now lumping GNN and European partnership accounts into its figures to disguise the stagnation at AOL. A O L W A T C H at crl.com contains many links to AOL related stories. Regards

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