TO ALL: AOL, may be going into a free fall..lot of bad news on CNN..very bad ! she droped
2-5/8 more points very fast..starting about 2:30pm in the options
section the FEB puts volume went way up..they were trading so fast
that the last trade was actually out runing and going for more than
the ASK..on the bid / ask colum ; all I could make of that is that
maybe the Market Makers were swaping puts, between them selves and
not even concerned with the ask price..has any one see puts or
calls selling above the ask price before ? this sure looked strange to
me.
Any way AOL lost 6.58% of her value today..on above average volume,
2.49M shares ( 3 mo avg is 2.39M ) I look for very heavy volume
tomorrow if she don't sell down before the bell, tomorrow will be
a hectic day for AOL..she closed with an order influx, but she has
been doing that every day all day for a week, like there is no
up tick or down tick running when you have an order influx, so
it seems to me that is one way for the MM to get around the no
short sell rule on a down tick..( or is it up tick ? )
Most every thing I see has AOL stock in big troble, she had big
earning losses the last two quaters..is running a -3.43 EPS,
and is now faced with the courts forcing her to have to make refunds
to as many as 2 million customers..some of them paid for year,
considering she only had 1.09 in cash per share when I looked
with 94M shares..2MX20= 40M she have to pay back out there goes
just about half her cash..gezz..boggled down as she is she can't
take in an more costomers so the cash flow is going to take a big
hit, what I'm leading up to..is were is she going to get the
money to make intrest payments on her dept ?
AOL looks like it has shot itself in the foot, and could well
be going into a hospital called chapter 11,
If usrx wants their money they may have to take over the co..
I sure would not sell them any modems on credit, not with their
balance sheet..AOL said she is going to up her spending another
100 mil to upgrade the system..were is she going to get it ?
This has to be a sad joke..wonder how much Steve Case gets paid
a year as ceo to pull this scam over on 8M users, and all the
share holders..?
AOL exec BOB Pattam says customer churn is not a proplem, I guess
not !! nobody seems to be able to get a phone line to answere
I never thought of that; just take the phones off the hook..and they
can't quit..( how dumb can I get ) any way AOL does not let you cancel on line..that is
if you can get on line...
even if their fantasy of upgrading to 400,000 modems could solve
their problem, they would have to drop 4M customers to make it
work..as that still would be only 1 modem per 20 people..any
ISP provider will tell you thats about half as many as you need,
they need to go all the way to 800,000 modems just to handel
their present commitments..flat rate unlimited usage means just that,
no GEE WIZ folks we never anticaptede this..crapola..they were
slow before the influx..this is now crime..law sute heck..this is
criminal..were is Janet Reno when we need her..<G>
Lets see if there is any thing else NICE I can say about AOL..
yes their 52 week low was 1.88 a share..they might be testing
it before long..doubt she will go below that..as she does have
enough share holder equity to put her book value at $ 1.91 per
share..she made a return of minus 44% on total assests,
and a minus 88% on equity according to the last DBS market guide
report...o yes a week ago they fixed a problem..said it was just
one router board..but how did one router board cause half the
system to shut down ?? if you can figure that one out let me
know..cause it don't make sence to me..THIS looks like a great
stock to own if you want to avoid paying a capital gains tax
next year <VBG>
cheers
JIM |
