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Technology Stocks : America On-Line (AOL)

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To: Frank Ellis Morris who wrote (3168)1/23/1999 11:52:00 AM
From: musea  Read Replies (1) of 41369
 
Frank,

I bought a wad of INTC on margin during the middle of 1995. It proceeded to drop below my purchase price. I know how it feels. But INTC is the leading company in a growing industry and it seemed that it would have to get back in motion. I feel that AOL is such a company, perhaps not as "blue chip" (pun possibly intended) as INTC. It is probably a riskier investment, but the same characteristics are there. The management, judging by their actions and statements, seems to be solid. There are no guarantees in investing, but I do think the effects you are talking about are short-term effects and that the true measure of AOL has not yet been found.

As to margin, I have used it myself, as noted above. I've found that I'm not a very good "margin-kind-of-guy" and I've paid off my margin debt. I am very familiar with the arguments for the judicious use of margin debt. It just doesn't fit with my personality and it makes me pay too much attention to the short term effects and clouds my judgement. My results have been just fine, thank you, without the use of margin for the past several years (those INTC shares were my last margin purchase).

And a good weekend to you.

-musea
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