Steve R. Good post. Keep it coming
The recent slide in the NASDAQ, in my opinion are investors taking profit. There is no change in the fundamentals of the stock market to be the cause for the slide. Otherwise, how do you explain the slide in CSCO after they reported good earnings. Or the sluggishness in AMAT after they reported better than expected earnings and a blowout order backlog and bookings. SO THERE ARE INVESTORS WITH MONEY WAITING IN THE WINGS.
After AOL splits at start of business on Tuesday 2/23, it would present these investors with a buying opportunity. They would view the split as a drop in stock price by half. To a prospective first time buyer of AOL, the split is NOT as complicated as "nine 1 dollar bills....." as outlined in your post. Thus far AOL has been the darling of small investors like you and me. The big funds got into AOL on or after Jan 1, 1999. (S&P 500) So the big funds will jump in at or near the post split price, expected to be around 75 to 85, instead of 160 (December 31 1998, after hours)
Lastly, @Home is a speculation. I mentioned in my post that it is a rumor. But again, AOL management has a good understanding of their business and a clear view of where they want to be. How many of us would have believed a rumor that a company such as AOL whose claim to fame has been "the cartoon software business", would be acquiring a high tech company such as Netscape. So anything is possible as far as AOL management is concerned. @Home!! Why not? Isn't Prodigy, Mindspring, PSINet waiting in the wings to grab AOL's business? To prevent that AOL has to move. So I would give some credibility to the @Home rumor (about 10%?)
Chinmoy |
