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

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To: RagnBull who wrote (10059)5/19/1998 8:13:00 AM
From: Keith A Walker  Read Replies (1) of 13594
 
The competition for AOL was and is inevitable - whether it is AT&T, IBM, WorldCom, etc. This is why I can never see the sense in anyone buying this stock when it only earns $0.16/sh (just beginning to show a profit). With estimates around $1.47 for next year, a long is paying almost a 100% premium on the dollar for next year's estimated earnings. Ouch! Looking at it another way, the stock should really be priced at about $41.

The growth is being sucked away from AOL by every ISP out there. And this will soon manifest itself in a slowing of new subscribers and loss of existing subscribers to other ISPs. Just my opinion.
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