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: robert duke who wrote (11417)	10/10/1998 7:55:00 AM
From: Stkbuyer	Read Replies (1) of 13594

I believe a potential price have to be in at least the $130 to $150 in order to interest the company and it would have to be with a company that offered an in to the cable access. The company is going to be trading in this price range in coming months anyway. Consensus earnings are about $1.02 per share, but considering that AOL consistently beats earnings, let's say actual fiscal 99 earnings are $1.25 per share. The PE at a price of $100 is only 80. Considering their growth rate of over 40 percent looking forward and the future of the internet, I think AOL is currently trading at a great purchase price, but I don't see the board going for being acquired at this time. Rather that an old fashioned takeover, I would predict a strategic merger with a company like Time Warner that would give AOL a big entrance into the cable access area and give TW the "Bell" of the internet companies. I think this type of combination would benefit both companies, would be a stock deal and therefore would be for a high valuation.

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