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

To: TARADO96 who wrote (28042)	8/4/1999 12:41:00 AM
From: FlameMe	Read Replies (3) \| Respond to of 41369

To all: Well, everyone has an opinion on AOL so here is mine. I am still long my core holding from $6. I have also traded with short term money from the long side and been stopped out twice with losses (most recently at $115). If you are worried about the end of the entire bull market, remember that recessions or occasionally inflation end bull runs. Personally, I think the odds are small for either of these. But, remember, a huge decline in the stock market could start a spiral that would end in a recession. We almost had this last year, but the Fed averted it and would do that again. If you are worried about AOL becoming the next Iomega, then I urge you to consider the fundamentals of those two companies. Yes, the fundamentals. When I bought AOL in 1996 it had an outrageous valuation. However, in all of two years that pe north of 100 became a pe of less than 10 using the price I paid. If you are trading short term, don't try to pick a bottom without stops. If you are looking to enter for a long term position, get ready to start nibbling. Maybe scale in to it. There is enough fear out there that we are probably close to a bottom. But, it's not going to go up 100% in a week - there will be time to invest when the tide has turned. If you are on margin, love the company, but are uncomfortable, reduce your position and don't feel bad. The market turned ugly quick. Tons of smart people lose money every day. You will have another chance to lever up when the market turns favorable. Just be ready for it. If you are invested for the long term. Relax, and keep an eye on fundamentals. It is always darkest before the dawn :-) There is big money waiting to return to the market and they will return. Greenspan may raise rates but he will jack the system full of liquidity later in the year to compensate for possible Y2K withdrawals. Of course, this is all JMHO which ain't worth much. Ross