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To: Chuzzlewit who wrote (132547)	6/13/1999 12:14:00 AM
From: musea	Respond to of 176387

Chuzzlewit, Greetings. You wrote: Stephen, AOL is getting back into the realm of reality, although I still think it is a bit expensive. I think I would start buying at around $80. I don't follow the brokerages, so I have no feeling for NITE or MER. I think that AMZN is too expensive at any price. It looks to me like the next Boston Chicken. When I bought into AOL, I was thinking that it was nearly fully valued from the standpoint of what I could foresee for its business model. I didn't think that there would be a very rapid share price increase but I wanted to have a toehold in the "internet" arena. As of Friday, with all of the declines it's seen, it is up nearly 300% from where I bought only 8 months ago. I would have difficulty buying in at $80, let alone today's price and much less at the levels we saw earlier this year. The rapid increase in price led me to question my methods of valuing a company, as you are aware. On the other hand, DELL is a different story. The next couple of earnings periods will tell a more complete story, but it seems to me that DELL is not yet fully-valued at the current price provided it can extend its business to maintain its growth rate, even given a lower growth rate as we have seen over the past couple of quarters. Given that, I will hold both my DELL and AOL for now but look out for changes in the fundamental picture with both. I expect, like you, that companies like AMZN will never grow enough to support its current price. In fact, I will go further to say that I agree with Warren Buffett that given historical growth rates of the entire U.S. economy, there is not enough growth to support today's internet stock valuations in any reasonable time frame. Good news about your courageous wife. -musea