AMERica on-Line, Another over valued company? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AMERica on-Line, Another over valued company?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Frank Badini	4/20/1996 10:53:00 AM
	of 222

AMER is definitely one of the most over-priced stocks around. It is selling at about 300-400 times expected earnings for next year. Since they already have 5MM subscribers, and will most certainly have to cut prices to compete, where will the earnings growth come from? Even if they had 50MM subscribers (which may never happen), and earnings were 10 times higher, they would still be selling at 30-40 times earnings. How long, if ever, will it take for earnings to catch up to the stock price? I can't realistically forsee an exponential subscriber base explosion over the next few years. Remember that most people are computer illiterate, and will never have an interest in AMER. Furthermore, it will be a few more years before cable can deliver high speed data. I will short a little AMER soon. Not too much though, because it may still go up on the greater fool theory.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next