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Technology Stocks : America On-Line (AOL)

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To: Chuzzlewit who wrote (4013)1/29/1999 4:18:00 PM
From: Steve Robinett  Read Replies (1) of 41369
 
CTC,
You say you will continue to write covered calls against my position and take the premiums that the market is offering me.

I have been known to play with an AOL option or two but, historically at least, covered writes with AOL generally guarantee the stock gets called.

On discounting AOL, with this quarter's operating cash flow of about .53 it is actually becoming possible to value AOL with traditional financial tools and, though a stretch, even the current market price can be justified if you assume continued growth at the current rate for the next decade, almost an impossibility. (Technologically speaking, how can anyone see that far ahead anyway?)
Best,
--Steve
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