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

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To: John Howell who wrote (1939)2/26/1997 4:35:00 PM
From: Brian K Crawford   of 13594
 
<<Tel-Sav is in a low-margin, low-tech (time reselling) business. Their rationale for doing the AOL deal was to give them "access to the technically savvy marketplace", and to provide online capability for service sign-up, bill review, payment, etc.

This makes me wonder how technically savvy Tel-Sav is.>>

John, Tel-Save net margins before income taxes were approximately 15% of revenues in calendar 1995 and 1996. I would not consider that to be low margin.

Also: the magnitude.....

<< -- Salomon Brothers said it upgraded Tel-Save Holdings Inc to strong buy from buy.

-- cited Tel-Save's announcement to offer long-distance telephone service to America Online Inc members.

-- raised the 1998 earnings estimates to $1.40 a share from $0.75 a share. Raised the 1998 revenue estimate to $900 million from $500 million. >>

Brian
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