SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line: will it survive ...?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Albert Moro who wrote (6361)12/13/1997 1:44:00 PM
From: John Albert Moro  Read Replies (2) of 13594
 
To Everyone:

The way AOL's share price has been behaving these last two weeks you would think that it has proprietary access to the Internet, mind you the sector is hot right now and it is only a question of how high these pups will go till the bubble bursts. If you check AOL's Balance Sheet you will find that their Current Ratio, a measure of how well a company can meet its short term obligations (Current Assets: Current Liabilities is .65:1 which is abnormally low for any industry type. No wonder they just borrowed 550m., there must be some problems in paying off their current bills (all that advertising and promotion costs money you know). Another item of interest about their Balance Sheet is lower depreciation for the last couple of years in a period of higher revenues, which may indicate declining investment in networking infrastructure (let's hope their present servers can stand the hits of those 10m. subscribers and climbing). And oh yeah, their short interest on 11/15/97 was 9,050,000 shares, this figure is probably higher given the activity of the stock in the last couple of weeks. It also might be that massive short covering has recently taken place as players cover their shorts strictly out of frustration with the stock's reluctance to go down so as not to lose the opportunity to short elsewhere while at the same time new shorts have entered the game. Coupled with all these upgrades have provided an ideal climate for the stock to climb to its present lofty perch.

JAM
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News