America On-Line: will it survive ...? Message Board

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

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To: Zoltan! who wrote (582)	11/13/1996 3:43:00 PM
From: Muizz M. Kheraj	of 13594

I can't understand why everyone is so negative. Here is a company with well over 7 Million subscribers (latest headline on Yahoo), projected to earn $0.75 in FY97 (which puts it at 35 PE) with growth projected at 50% annually year over year into the 21st Century, which is being accumulated by large firms and everyone wants to put a negative spin on it. Think with your minds, not your pocketbooks. Just because you're short doesn't mean the stock will head down! Just look at the 7 Million figure. At $20 per month, 12 months, and expected growth to be to 10 Million subscribers by the end of FY 97, let's look at their revenues for FY 97: $20 x 12 x 8,000,000 (~ average subscriber base, including free month) = ~ $2 Billion Revenues in FY 97, from subscriber sales alone. At the current clip of 5% profit margin, this brings earnings by my simple calculations (excluding all other revenue potentialialities (such as advertising)) to $1.21 in FY97. I feel that this is extremely impressive and unless you have figures different than those above, I can't see how you can continue to bury this company. Muizz

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