AMERica on-Line, Another over valued company? Message Board

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Technology Stocks : AMERica on-Line, Another over valued company?

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To: Bob Wang who wrote (3)	2/28/1996 1:04:00 PM
From: Scott Maxwell	of 222

I wouldn't get too excited about your ability to move markets -- the eye-opener was ATT's "free" service and US West's purchase of Continental Cablevision. Both point to ubiquitous generic WWW access as the mass-market standard, killing AMER's business model. AMER management, if they're smart, are already deeply involved in splitting their service into content provider vs. access provider parts, allowing access to services (some free with advertising, others pay-per-view) to Internet outsiders and reducing their attempts to retain customers in a high-cost proprietary corral. They will probably announce their plans with great fanfare as if they had not been forced to do so! At the same time they are being forced to build out their local access network to provide anything like decent service to their current customers. This is costly and likely to be obsolete quite soon. It may take some time for the market to catch on -- that not only is the stock overpriced, the strains of growth and obsolescence call into question their ability to even survive. Look for more false rumors of mergers to allow big holders to get out with their shirts.

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