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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (20943)	6/8/1999 6:28:00 PM
From: Tom Tallant	Respond to of 41369

Vendit, Here's a good read from the Raging Bull board: ragingbull.com Regards, Tom

To: Vendit™ who wrote (20943)	6/8/1999 11:23:00 PM
From: Joseph Shah	Read Replies (3) \| Respond to of 41369

S&P EFFECT WILL PLAY IN THREE WEEKS Is anyone remember why AOL had such a great run in the last week of March? Just a refreshment of our memory. Since AOL is listed in S&P 500 as of 1/1/99, all S&P index fund managers (whether they like the net stocks or not) have to buy AOL at whatever cost to qualify the fund as S&P index fund because AOL weighted rather heavy in the index. Well there are fund managers don't want to buy the net stocks. So they waited, waited until last week of March which is the first quarter that AOL is listed in the index. The fund managers have to take action at the last week of March for the fund to pass the audit. Then it is CBS acquisition rumor to push the stock higher to reach its all time high at 175 on 4/6/99. Remember, most of the fund managers have unloaded AOL in their funds now. They have three weeks now to buy back AOL for their funds to qualify as S&P index fund in the second quarter. Patient is needed for all AOL fans. We will see the stock having a strong rally in the last week of June as the fund managers had to buy back AOL no matter what. Well after all, it's an excellent investment. Just some traditional fund managers could not accept AOL's PE ratio. Whether or not Feds raises the rate, life goes on. If anyone had historical chart, see March 1998. Market rallys every next day after the FEDS raised rate for 1/4 % because the market already factored in. BE PATIENT