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

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To: James F. Hopkins who wrote (1178)1/23/1997 9:09:00 PM
From: LordDarley   of 13594
 
There will most likely be a private placement (perhaps with AT&T) or a secondary offering. It would not be that hard to raise 3-4 hundred million that way. The fact that Wall Street has been talking it up is precursor of this type of development.

As soon as they announce it, causing a dilution of no more than 10%, people will calm down because they will know the cash is there. A deal with T would move this thing into the 60's overnight. As the stock starts to climb again, folks will recognize that this was a good buying opportunity.

Remember, the stock was only 11/share two years ago, so it has been a very good performer for people who were sensible enough not to buy at the recent stratospheric levels.

Stay calm. I bought a bunch of this stuff at 30 with the idea that it will be a wonderful investment 5 years from now with a lot of ups and downs along the way. I still feel that way. There is enormous brand loyalty to AOL. Once they have the access problems fixed, most who quit will come back.

George
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