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Technology Stocks : America On-Line: will it survive ...?

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To: go_bucks who wrote (1677)2/11/1997 2:15:00 PM
From: John Howell   of 13594
 
Charlie,

The stock had already run down from the low 40's in anticipation of poor earnings. Keep in mind also that this stock is fairly well distributed.

IMO, one reason that the stock hasn't already sold down more is that it takes the street a short period to digest AOL's earnings statements. AOL does not publish a report that allows a quick analysis of their financial or operational status. For instance, infrastructure additions made necessary by subscriber growth are charged off as "extraordinary".

Also, analysts at most major firms know very little about on-line technology. They concentrate only on the potential of AOL to become an earnings story. As the inevitable bad news continues for AOL, they will downgrade accordingly.
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