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

To: Ed Forrest who wrote (25620)	7/13/1999 8:04:00 PM
From: Ed Forrest	Respond to of 41369

Reading material: Ed After yesterday's profit-taking, AOL back on track: UP! After moving up for 9 trading days in the row, AOL took a breather yesterday which I consider as a normal and healthy profit-taking. Today's move (down 117-up 125) has showed how strong the uptrend is for AOL. I believe this stock shall continue its runup due to the following reasons: 1. Broward county's open-cable decision. Just like Oregon's court decision which help AOL gain more than 10 points on that day, AOL surely will benefit from Broward's decision this time. From these two decisions, there is no seasons for investors not to believe the same rulings will keep coming. 2.Macroeconomic Enviornment: I don't see any inflation threat near term. As we are expecting the PPI and CPI numbers, the most sensative bond market has been holding on pretty well lately. The only factor that might cause inflation concern now might be the oil price, but recent oil price increase will only reflect July's number. Fed's earlier interest-raising decision was not based on inflation signs but a precaucious "flu-short" (I believe the true purpose for the hike is to cool down the equity market rather than inflation concerns), if the economy continues its current performance, the inflation is still not on the horizon. We now put aside Fed and take a look at the US commerce department, both Rubin and Summers have been very opmistic about US' economy. US have been importing cheap merchandises from all over the world, therefore, even with the strong growth, consumers still don't feel the price increases, do you? Cheap foreign imports also pressure US domestic manuafacturers, so they have little chances to increase their prices. Therefore, here we are: Good economic growth with no inflation; tight labor market. What a good country! 3. Micro-Enviornment: Corporates' earnings will still be the domenating story for the rest of this month. Of course we will see bumps down the road, but this earning ride shall be investors' last opportunity to jump in the marktet before slow season starts. Do we see some people on this board have already started preparing for vacation now? I believe they will not have a nice one if they see the stocks they owned up another 20-30 percent from now. Profit-taking should always be concerning the investors in the market. I predict there will be more profit-taking in other sectors (for example, semiconductors) which have been at their all time highs recently. For internet stocks, the leaders like Yhoo, Aol are still miles away from their highs, even profit-taking happens, they shall be small and healthy ones which will help these stocks move higher. EARNING DRIVE THE MARKET, ITS NOT THAT COMPLICATED! Good luck to you all. Stockadvisor.