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Technology Stocks : Netscape** what should be the price?**

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To: Sharon L. Patching who wrote (39)5/8/1996 3:22:00 AM
From: Bill Harmond   of 140
 
Sharon, I think AOL is a fine, fine, fine investment. I own it.

There has been lots of talk about AOL's business model being destroyed by the net. I just don't think it will.

1. There are plenty of people who need to be spoon-fed the rich, well-organized environment that AOL provides. Online penetration in the US is still only around 11%.

2. AOL has embraced the net, and thru deals such as the one with AT&T will save immense sums in network overhead costs by being accessible thru AT&T's net connection. This will allow AOL to reduce their costs to subscribers substantially.

3. AOL continues to gain share in the online arena.

4. AOL has become a global enterprise. It has also become a LOCAL enterprise thru it's rollout of services specializing in various metro areas (DC was the first).

5. AOL's integration with Microsoft Windows is a huge plus, saving them in the areas of software distribution (either thru disk/CD distribution, or paying PC makers to pre-load AOL software)

6. The Microsoft and Netscape deals saves them millions in browser development costs.

Buy it and hold it.
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