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Technology Stocks : America On-Line: will it survive ...?

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To: steve lipson who wrote (8251)2/25/1998 1:59:00 PM
From: Eric Klein  Read Replies (1) of 13594
 
Steve,
The intrinsic value of a company comes from it's earnings. AOL has never really made money. They might show a positive quarter here and there, but they usually later restate results to show a loss. Right now they're selling for a P/E > 500. All the arguments in the world about the franchise value of AOL don't mean a thing unless they can sometime, somehow make money.

This is a bubble, pure and simple. The question is not whether it will burst, merely when.

I think that all the shorters of this stock would love to have been long this stock for the last year. So if you've been long, Congratulations! I hope your judgement is as good on when to get out of AOL.
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