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

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To: Option Player who wrote (1296)1/30/1997 5:38:00 AM
From: Curtis Philips   of 13594
 
The public may have no clue yet how hopeless AOL's financials are, but I'd wait for a bit until the analysts calculate the costs of this settlement on the bottom line (Case refused to guess today). With continuing liability for poor service from February onward, they are at further financial risk, something Wall Street analysts don't like.

With one free month settlement for two months of nonservice, AOL effectively earned $9.95 from each customer for Dec and Jan. That's the same they were making for basic membership before then, AND they're not getting the extra money from all those who used the service more than 5 hours a month before they started the flat-rate plan.

Add the $350,000,000 expansion, the frozen (and bailing) customer base to the mix, and what analyst isn't going to blow the whistle in the next few days?? If I see any more buy recommendations after this, you know it's the pros trying to manipulate the market long enough to sell their long positions.
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