So now we have predictions of 40. Anyone for 20? LOL Folks, let's look at the big picture. AOL always runs fast and then corrects hard. AOL is always given up for dead, then roars right back to life and establishes its dominance. We have corrected about 30% so far, less than the 50% corrections that this stock is capable of before bouncing right back and reaching new highs.
This situation with broadband is almost like the '95 - '96 situation, though not as serious. Back then AOL had gone through 3 splits, like it has now, and everyone thought it was going to the moon. Then competitors came out with unlimited service, and everyone gave up AOL for dead. AOL countered with umlimited service, and the busy signal crises started. The stock dropped 50% or more. AOL was a joke. Guess what? AOL made it all work, and soon hit new highs. Those who bought back then are rich today.
Today we have this broadband issue, which is a straw man. Cable is at least 3, probably 5 years and many billions of $$ away from being a serious competitor. AOL rolls out DSL this summer, which in throughout is about the same as current practical cable technology.
I predict AOL will hit new highs within a few months.
JMHO |
