Steve,
After I posted what I did, I re-read what you wrote and realized what you were saying about supporting the price of AOL. I should have posted again at that time but I didn't, figuring that nobody was interested in a "Ooops, never mind!" message. I was reacting to the "bacterial growth in an ideal environment" subscriber model before I read the rest of the post.
You really posed the question that I had in mind when I started the thread. I own some AOL stock, purchased at what is now a ridiculously low price. As usual, the question is "Do I sell, hold or buy more?" There is only one way I know to answer that question, which is to understand how to put at least an approximate valuation on the company. As you correctly point out, in order to even support today's price the linear growth model would need to change, unless, as one pundit put it, we were willing to "discount the hereafter" which is infinite, of course. And to sign up Martians.
Thanks for being gentle.
-musea |
