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Technology Stocks : America On-Line (AOL)

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To: Mohan Marette who wrote (3869)1/28/1999 11:56:00 AM
From: PDL  Read Replies (1) of 41369
 
MM: The $.22 EPS reflects the "benefit" of off-setting normal income taxes with tax-loss-carryforward "reserves." When AOL took that write-down a year or two ago, they built up a large loss which acts as a credit against earnings today that would otherwise be taxed away. The $.17 "after adjustment" shows what the EPS would have been under a normal tax basis. The $.17 is what the analysts and most investors will consider the real number and basis for valuation.
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