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

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To: Harry Larson who wrote (1917)2/26/1997 2:55:00 AM
From: LordDarley   of 13594
 
I don't deny this. It is technically a loan. But remember, this is a loan to an "insolvent" company that bears were supposing would never be able to raise money, even with a secondary. Now they get $100M up front with equity incentives to boot! Cash flow crisis is what bears were counting on, and this deal is very bad news for bears as a result.

<`Multibillion'? You're really getting ahead of things. >

I'm just multiplying the number of shares times the share price. How would you do it?

The point to bears is that you are simply focusing on one side of the playing field. You are seeming more like ostriches at this point, exulting in nonsense like this recent spate of pedestrian litigation and ignoring positive developments.

Personally, I think it is inordinately risky to hold a meaningful position in this stock either way at this point. In fact, there is a million dollar pool in the Santa Anita Pick Six tomorrow. I would rather go long on Nakatani knowing that the most I can lose is the price of the ticket. Definitely no short position for me on AOL at this time. If some more good news comes out, this thing has got a pent up ten point rally in it.

Regards

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