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

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To: yard_man who wrote (2147)3/5/1997 10:06:00 AM
From: IceShark   of 13594
 
Barry, AOL sign-up packages come every few weeks. I could have stayed on the internet "free" for ever I think, I went through 2 back to back cycles of signing up for the trial. But decided to junk AOL anyway since the local access number was outside Ameritech's local call area, and my local service bill was going to look like a long distance bill! And that was before I had unlimited access. Last months long-on time for example was 307 hours. My prior AOL usage was ~ 15 hrs/month. Doubt I am normal but that should give an idea of the magnitude of AOL's and the RBOC's problem.

Anyway, my point was that he had a point regarding ease of use. Most ISPs have not made it easy yet. If AOL can fix the capacity problem quick, the subscriber base should increase and the churn rate should crash with the new flat rate plan. Now whether they can make money is another matter. I'm trying to figure out how investors can be pushing this puppy so high. Prelim answer is subscriber base will skyrocket and somehow the money will follow. Maybe it will. Granted they are rolling the dice on big question marks.

Regards, DWW

PS The latest short interest (2-14-97) is 21.8mm shares - more or less unchanged from the prior month.
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