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Technology Stocks : OneMain.com (ONEM)
ONEM 16.470.0%Feb 22 4:00 PM EST
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To: Mohan Marette who wrote (426)5/27/1999 11:35:00 PM
From: Glenn Petersen  Read Replies (3) of 614
 
Actually, the company is churning out a fair amount of PR and the analysts keep reiterating their buy recommendations. Several factors, none of which are very valid IMHO, seem to be working against ONEM:

--General broadband fears. The BusinessWeek Online article addresses this issue and ONEM is perfectly situated to thrive in the hinterlands. The cable threat is overstated, the dial-ups are not going to disappear. Long live DSL. Recall that five years ago everyone thought that the Baby Bells were going to own the ISP market.

--People have yet to see any evidence that ONEM is going to be able to successfully integrate their ISPs. Given the timing of the offering, the first quarter results were reported on a pro forma basis. We should have a better handle on the operating results after the second quarter results are reported. I suspect that we will see that a lot of redundant costs have been cut out. Note that, on a pro forma basis, ONEM had positive EBITDA during the first quarter. There may also be some confusion about the goodwill write offs; $249.6 MM over three years is a big number.

--The original deal was complicated and there may be some concern about the contingent payments that may or may not be due to the original ISP owners. If I have some time this weekend, I may spend a couple of hours trying to come up with an estimate for these payments.

As for Bob Dole, the last I heard was that Elizabeth had him in the dog house because of his John McCain comments. LOL.

If I can free up some cash, I will probably be adding to my position.
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