SI
SI
discoversearch

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 (AOL)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tunica Albuginea who wrote (1211)1/4/1999 4:17:00 AM
From: sakura  Read Replies (1) of 41369
 


AOL's recent jump seems to you irrational. With more than 70% of
outstanding share of institutional investors at current price 155,
20% swing would be at most a huge swing. But scariest thing to sell
AOL is that everybody who perceive their sales growth from
1998, 2400 Mil to
1999, almost 4000 Mil with profit margin at least 20%, give them
800 Net Income, which will be from Current P/E 650 to 65 at
assuming no price change. Since such growth Co. P/E will be at
least 150, means from now on more than 120% return. This is the
reason I can't short AOL no matter how high it goes. If this goes
210, maybe in the short term.

Anyway, almost everybody know AOL will double every few
years.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext