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Technology Stocks : Who audits AOL's membership numbers?

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To: Art Stone who wrote (3)2/25/1997 10:06:00 AM
From: John Howell   of 65
 
The Ugly Truth......Art, AOL is a business that up until now has depended on increasing cashflow from new subscribers to mask the fact that their business model is flawed. Can you say Ponzi?

It is my personal opinion that AOL has reached the end of its rope in being able to tapdance its way out of trouble via increased subscribers and creative accounting practices. They can't possibly grow the subscriber base by enough to continue with the old business model (In fact, they are supposedly prohibited from their old carpet bombing mail-out tactics by their settlement with the states AG's). Their reluctance to discuss membership numbers is almost certainly tied to massive defections due to fraudulent credit card billing practices and generally poor service. If they released truthful membership data the street would immediately ascertain the depth of AOL's problems.

They have until the May reporting period to keep the company aloft enough to let the insiders bail out.
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