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

To: J Krnjeu who wrote (23926)	6/25/1999 11:04:00 AM
From: HECTOR RUBERT	Read Replies (5) \| Respond to of 41369

Dear J Krnjeu: How AOL will make me a millionaire by 12/2000. I appreciate your inquiry and its only fair that I back up my statement. Here is what I see happening with AOL for next 1.5 years. AOL will launch DSL service this summer. Expect DSL service to be fully launch throughout all baby bells by end of 1999. This will beat cable access as it won't have the DSL reach by end of 1999. This will increase subscription growth much faster than estimated. 20 million subscribers put up with slow 56k modems because they love their AOL service. But, with AOL DSL..you have now a captive audience plus a brand new power reach of superior content and high speed delivery. Its a complete win/win situation. Earnings will accelerate faster as subscriptions grow with the DSL service. Look for AOL's subscription population to grow to 25 million by 12/99. Regardless of what Greenspan does. AOL's reach will grow faster than estimate along with earnings which will appreciate the share price of the stock. The AOLTV strategy will move AOL from the static PC user to the casual family users where they like the convenience of AOL content but don't like to be in front of a PC all day. This will address a market segment currently untapped. Hint: New income stream and more subscription growth. The AOLPC strategy will allow cost friendly distribution of AOL to market segments currently offline due to high price PCs. With a co-branded AOLPC at $200 bringing AOL software and Netscape/SUN OS, you are looking at a brand new distribution channel currently unavailable. Right now AOL pays Box makers to include AOL software. With an AOLPC at $200, AOL has control over design and distribution of the hardware and software. With DSL ready PC's for $200 net-newbies will pass on the DELLs and buy AOLPCs. In summary: 1)AOLDSL will have broader reach and market share than cable by 12/99. 2)AOLPC will commoditize PCs and reach buyers directly. 3)AOL income streams will broaden from subscriptions and advertising to the following: A. Strategic alliance and equity ownership in Talk.com will provide long distance phone income. B. Acquisition of MovieFone will add income similar to a Ticketmaster service. C. Recent Acquisitions of Online Music Delivery will add income from royalties of distribution plus music sales. D. International Investments and Ventures will add to the bottom line as international markets recover. E. AOL's increasing presence and reach will command the bulk of big dollar investments from corporations trying to reach its broad audience. F. AOL acquisition of NETSCAPE and strategic alliance with SUN will also add an income stream related to enterprise software with the collaboration of one of the industry leaders in SUN. People talking and looking at current PE and estimated earnings are forgetting the key word (ESTIMATED)!! These estimates were based on the subscription growth and advertising sales. However, AOL is reaching into new income streams not on the analysts models. As the pieces come together, the analysts will add these pieces to their models and you will see a dramatic rise on their estimated earnings growth projections. Followed by STRONG BUY recommendations and new money invested pushing share prices higher. With 2,500 shares and looking to acquire another 500, I'm looking to sell by 12/2000 at $330. This is how I see it. Hector