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

To: Vendit™ who wrote (27646)	8/2/1999 11:59:00 AM
From: Ed Forrest	Read Replies (2) \| Respond to of 41369

The Adviser.com Alert - the-adviser.com This week's edition of The-Adviser.com Alert was issued at 1:35 AM EST on August 2, 1999. There were strong rumors in the market place (CNBC reported it) that Barron's Magazine was going to have a negative profile on America Online today. The stock, which opened near $100, closed down at $97 1/8. CNBC got it only half-right. This week we continue to profile AOL. We have the answer that millions of investors want to know. Why did Steve Case sell 9% of his AOL holdings? As we all know, management of the Company is not allowed to sell their holdings prior to earnings release. However, once the earnings are released, management can sell - or buy. The key trick is to find out what is now in the public domain that caused Steve Case to sell. Our analysts, who have a knack at reading at SEC filings and earnings press releases, have discovered the answered. After digesting the latest quarterly and fiscal year results from America Online, our analysts were stunned by the sudden slow down in America Online's growth. The recent quarter to quarter growth (Q4 to Q3) rate of 4% was the Company's slowest since March 1997 when AOL was troubled with access problems and bad press. Prior to that, the numbers were much higher. In fact, in Q3 1999, quarter to quarter growth (Q3 to Q2) rates approximated 12%. During the same period in the last two years, we estimate seasonal growth rates of at least 7%. If this 4% growth rate continues in the year 2000, we estimate that AOL's annual growth rate will decline from 34% to 21% - all before consideration of AOL's free pricing model in Europe and possible price cuts in the US access market. This has major negative implications for the stock. We have the full story and exclusive research available only at the-adviser.com.