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To: DOUG H who wrote (10892)	6/9/1999 5:21:00 PM
From: Jing Qian	Respond to of 29970

Fools==Bulls. Wise==Bears.

To: DOUG H who wrote (10892)	6/9/1999 5:38:00 PM
From: Cynic 2005	Read Replies (2) \| Respond to of 29970

<<A rise in interest rates can cause stocks to decline because higher rates decrease the current value of all future net income at a company. However, this might not prove accurate with Rule Breaker-type companies that have high amounts of cash. In fact, higher rates might increase the value of future earnings by increasing actual earnings. An upward tick in interest rates could prove a good thing for a company like America Online (NYSE: AOL), with $2 billion in cash and equivalents, or Amazon.com (Nasdaq: AMZN), with over $1 billion. Many new companies, especially those that recently came public, have large amounts of cash and little debt. Being cash-rich, higher interest rates would mean higher interest income. Analyst Keith Benjamin of BankBoston Robertson Stephens said today in a Reuters interview that higher rates should actually inflate his earnings estimates for certain cash-heavy companies (such as AOL). >> This part. It is shameless bullish spin.