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Strategies & Market Trends : APMP (formerly APM)

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To: srvhap who wrote (10010)2/11/1998 1:29:00 AM
From: Jacky AY  Read Replies (1) of 13456
 
Any particular reason? As far as I know, AOL has yet to grow earning in a consistent way. The stock trades at forward P/E of 121 (fy98) and 66 (fy99). The reason why the stock goes that high is plain manipulation by money managers and blind purshases by beginning investors. The company had to increase monthly subscription fee but advised ANALysts not to raise earning estimate just lately. Do you know why? Because the company knows they won't achieve the earning goal without the price hike.

Do people know AOL's cost of doing business is growing faster than revenue? Do people know AOL will be losing customers and potential customers to MCI/MSN/ATT/Earthlink/local-ISP due to the new pricing plan? Do people recognize AOL is so over-valued even compared to Microsoft? Probably not...
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