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Technology Stocks : America On-Line (AOL)

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To: Tradelite who wrote (7031)3/18/1999 1:49:00 PM
From: Smart Investor  Read Replies (5) of 41369
 
First, I am a share holder of AOl since last year. With that said, I think the run-up is overdone. Now, AOL has a market cap of 110 BILLION. It is still in a business with a lot of strong competitions from both the ISP side and e-commerce side. When you consider Intel has a market cap of only $200 BILLION and CSCO has a market cap of $160 BILLION, it is clear AOL's valuation is stratospheric. There is no way AOL should be worth more than Intel. we will definitely see pullbacks to below 100 in the next couple of weeks. I plan to sell half of my position today, and wait to buy it back at a lower price.
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