Gapped up on the opening to just under the uptrend line (which was decisively broken last week) in place since the acceleration of its rise of the April lows. Unlike almost every other tech on my screen, has not bounced back to its opening high after pulling back from the opening. Just made a new intraday low.
FWIW.
From today's briefing.com:
<< AMERICA ONLINE INC. (AOL) 73 5/16 CLOSED. Shares of on-line service provider are expected to be on the spotlight again as the company announced this morning that it has surpassed the 10 million subscriber mark, six weeks ahead of schedule. On Friday, the stock got a boost from the announcement that it had expanded its 56K high speed access service to an additional 200 cities, utilizing 3Com 56K modems. Coupled with this announcement, on Friday the stock received a ratings upgrade from Merrill Lynch to a near-term "accumulate" from a "neutral," and kept its long-term rating at a "buy," which allowed the stock to post an increase of $4 13/16.
And given today's announcement that it had surpassed the 10 million subscriber level ahead of schedule, today's appearance by AOL's Steve Case on CNBC will not hurt the rebound the stock appears to be in at the moment. In the past couple of weeks, the stock had fallen from above $86 a share to the $64 level, before making its way up to the mid-$70s. And while the stock is still 19% below the high reached in late October, we continue to argue that the stock trades at a lofty multiple of 81 times projected fiscal 1998 earnings of $0.91 a share, according to First Call estimates, and 46 times projected fiscal 1999 earnings of $1.61 a share. Even still, these valuations are not keeping investors from jumping on the stock and Wall Street continues to back the shares.>> |
