OT: AOL's latest from CFO
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biz.yahoo.com
AOL CFO values shares at $150 each - paper
NEW YORK, May 4 (Reuters) - America Online Inc. rose sharply on Monday following a report in Barron's that AOL's chief financial officer said recently that the stock is worth almost $150 a share.
AOL CFO Len Leader, at a Hambrecht & Quist conference last week, said the combined value of AOL's subscribers, its advertising revenues and international operations and cash make the company worth $149.50 a share, the financial weekly said in the ''Plugged In'' column of its May 4 issue.
Shares of the online giant rose to $87-5/8, up $4-1/8, in morning trade.
''The favorable Barron's item is definitely helping the stock even though a lot of it goes over the same material the company presented at the H&Q conference (last week),'' said one technology stock trader.
The paper said that, ''Leader suggested that AOL's 14 million subscribers are worth about $1,500 each, which is about how the market values subscribers to other consumer Internet service providers, for a total of $87 a share.''
Valuing AOL's advertising and E-commerce revenues at 20 times revenues, he tacked on another $50 a share, the paper said.
''Throw in $7.50 a share for international operations, and $5 a share for cash and investments, and Leader concludes AOL is really worth $149.50 a share,'' Barron's said. |
