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

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To: robert duke who wrote (12523)12/18/1998 12:32:00 PM
From: Rajiv  Read Replies (1) of 13594
 
I have sold 50% of my AOL position today. Used the proceeds to buy NSCP.

- NSCP is trading at a discount to 0.45 times AOL's stock price. The merger is expected to close in the spring of 1999. I am expecting NSCP to mirror the % movements of AOL is the short-term. The discount will slowly go to 0 as the merger closes. As AOL's market cap is 10 times larger than NSCP, it is very likely that NSCP will move up to 0.45 times AOL rather than AOL going down.

- The chances of the merger not going through is very slim.

Regards.
Rajiv
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