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: Christopher Grace who wrote (6696)1/6/1998 6:17:00 PM
From: Steve Robinett  Read Replies (3) of 13594
 
Chris,
<<high-speed access will not implode AOL>> I agree. It will be more like the death of a thousand cuts, slow, painful and over a long time. My point was that the demand for high-speed access could grow quite rapidly as "convergence" between computers and TV continues. In that universe, AOL has little to offer cable companies and the Time-Warner/US West deal shows companies already preparing for a wide bandwidth future.
Content? Alfie The Elf? That competes with Disney?
As for a 'buy' recommendation from Paine Webber, so what? Most of the houses on the street have buy recommendations on AOL. That's one of the reasons I think the stock will top $100/shr before the next earnings announcement.
A buyout? Surely you jest. Who would buy it, why and for how much? To see AOL as a business opportunity, someone would have to solve the very problem we're talking about--how AOL is going to go about making a living over the next 10 years. They would have to have a vision AOL currently lacks. And what would they pay for it? Certainly not the current inflated market price. In theory, people are supposed to buy assets for their potential return (except AOL stock, of course, which people buy because it's patriotic). Discount AOL's cashflow over the next ten years and see what kind of buyout price you get. The price comes out between $40 and $60 dollars/shr. Opps.
BTW, why are all those insiders selling?
Best
-Steve
P.S. Sorry my answer isn't as complete as usual. I'm a little pressed for time today.
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