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

To: Boplicity who wrote (27903)	8/3/1999 4:05:00 PM
From: puborectalis	Respond to of 41369

Just saw 112K share block trade at 4PM. Geez..we now have the reason for today's 'fecal' day.......Tuesday August 3, 3:47 pm Eastern Time Internet stocks down sharply on interest rate worries PALO ALTO, Calif., Aug 3 (Reuters) - Internet stocks were down sharply on Tuesday as investors, bracing for higher interest rates, sought more stable investments, analysts said. Unlike some previous downturns in the sector, which have been based on such issues as corporate performance, the latest wave of pressure was linked to broad economic issues. ''I'm convinced its connected to the macroeconomic environment,'' said William Blair analyst Abhishek Gami. ''A lot of people are investing in these companies based on what they'll do in the future, and if higher interest rates create more attractive investments in another area, they'll pull their money away from the risky Internet sector.'' The broad downturn hit such companies as Internet portal Yahoo Inc. (Nasdaq:YHOO - news), down $6.63 to $125.69, auction site eBay Inc. (Nasdaq:EBAY - news), off $5.25 to $86, and Drugstore.com Inc. (Nasdaq:DSCM - news), down $9.50 to $35.31. Drugstore, which recently went public, is down from a peak of $70 just a week ago, and Amazon.Com Inc. (Nasdaq:AMZN - news), off 50 cents to $94.50, is trading at less than half its 52-week high of over $221. ''There are a lot of concerns over the risk of higher interest rates and a lot of trepidation now about the employment numbers coming out on Friday,'' said Dain Rauscher analyst Robert Toomey. The U.S. Labor Department will release key unemployment data for July this Friday. ''Investors are afraid if the numbers are strong, the Fed will definitely raise rates again,'' he said. Analysts said Internet stocks, many of which are losing money, are particularly sensitive to the phenomenon, since investors are highly focused on their future potential rather than their current performance. However, some said recent earnings reports did not help the case for Internet stocks. A number of companies barely met analyst forecasts and others, including Amazon and Mindspring Enterprises Inc. (Nasdaq:MSPG - news), said they would increase already-high spending levels to grow their businesses.

To: Boplicity who wrote (27903)	8/3/1999 4:09:00 PM
From: Paul Merriwether	Read Replies (3) \| Respond to of 41369

Greg do you find the "CLIMAX" bullish? TIA pwm

To: Boplicity who wrote (27903)	8/3/1999 4:19:00 PM
From: Sonki	Read Replies (1) \| Respond to of 41369

i put in an order to buy 500 at mrkt. it got in exactly at 4:00 and i see trades went on for 7 mins after close, but fido claims once 4:00 it goes to the next day as a mrkt. i guess that means your trade has to be in by 3:59 ! i cancelled it. i m not buying at mrkt tomorrow AM. though any one bot at close will make mony tomorrow morning ------------- Action Buy Quantity 500.000 Shares Symbol AOL Description AMERICA ONLINE INC COM Price Type Market Price Trade Type Cash Time in Force Day Conditions None Order Number 215S0025 Order Date 08/03/1999 Order Time 4:00pm Cancel Date 08/03/1999

To: Boplicity who wrote (27903)	8/3/1999 4:31:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 41369

Look at that Vol. baby. CLIMAX. Easy, Greg, you are getting a bit too excited "-)

To: Boplicity who wrote (27903)	8/3/1999 5:01:00 PM
From: Steve Robinett	Read Replies (2) \| Respond to of 41369

Greg, Volume today was 3 standard deviations greater than average for the last month but--and it's a big but--price movement barely kissed one standard deviation below the 20 day moving average and closed at about .7 of one standard deviation, which is significant but not very. To get a downside climax, most TA types want both very significant volume and very significant price movement. On fundamentals, the street suggests AOL's growth rate is about 50%. (I think it may be a bit lower but some of that is probably seasonal.) P/E usually has something to do with growth rate. Giving AOL a bonus as a name-brand franchise, a 60 p/e would let AOL get cut in half again and still not be undervalued by traditional valuation methods. In other words, if Wall Street gets down on AOL, it could easily sell for $50/shr. Why would Wall Street get down on AOL? Opinion follows the market. The stock goes down, analysts find justification for the price movement--broadband, slowing subscriber growth, Instant Messanger wars, Steve Case's pineapple farm (i.e., selling)--whatever. The TA types will point to 200 DMA and breaking the neckline of a head-and-shoulders pattern. And, of course, higher interest rates will pound the crap out of high P/E stocks for a variety of reasons. My point is obviously that calling bottoms is an iffy business at best. When I try it, I frequently get creamed. The intermediate term and short term trends are both undeniably down. I closed out some AOL calls today and propose to wait until the market works out its problems, whatever price that happens to be. Best, --Steve