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

To: Rascal who wrote (23236)	6/19/1999 2:12:00 PM
From: David Petty	Respond to of 41369

Rascal, thanks. It just might have something to do with the CBOE and the unwinding of some option play... As to your option notice posted on AAG- Fidelity's action does seem unwarranted on several counts. I have not messed with margin too much on non fully marginable stocks, so I am afraid I can not offer any advice from experience. David II

To: Rascal who wrote (23236)	6/19/1999 3:46:00 PM
From: john douglas	Read Replies (2) \| Respond to of 41369

Rascal, are you saying that Fidelity has now classified AOL as non-marginable? If so this would seem to be a somewhat belated reaction, akin to slamming the stable gate shut after the horse has bolted. I trade with Schwab which will now issue a margin-maintenance call on AOL at the 60% level compared to the 35% level last year; but that move was made many weeks ago. Let's hope Schwab does not move to the 100% level on AOL, as it has on CMGI. While many aggressive position traders may have used more margin to go long internet stocks than was prudent, moves by brokers to increase margin maintenance requirements have, IMO, exaggerated the recent internet correction. Put another way, valuations in the internet space are being temporarily depressed by recent broker margin adjustments, which have prompted forced selling earlier than anticipated by aggressive longs. Let's hope that margin adjustments in the internet space are in large part behind us, and that this exogenous factor is removed from the valuation equation. jd p.s. am I the only one to take objection to the trend toward more pomposity in analysts' diction. My vote is that going forward they abandon the tired cliches and speak in language intelligible to my eleven-year old. But I forget, how else can they justify their million-dollar compensation packages while their price targets are being mocked by Barron's, and put into serious question by the market itself? Later.