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

To: Bridge Player who wrote (28618)	8/5/1999 6:38:00 PM
From: Dr. David Gleitman	Respond to of 41369

Dear bridge player: Taking that analogy one step further, nobody ever brags about how cheap their Scotch is or how inexpensive their doctor is. The key to valuation of any security is based not only on its intrinsic value but on the value we placed upon it at the moment of time based upon market sentiment and momentum. One of the keys to playing the market is to become a contrarian. How I remember last April with AOL reached over 170 and we all felt that this thing is going to the moon. Anybody thinking of selling it at that time and price was to be considered out of their mind because of the incredible potential that it still "possessed". 20/20 hindsight is a wonderful thing to have. Just imagine at that time somebody were to sell the covered calls for August. I'm getting dizzy just thinking about it. Who have thought that AOL would've drop-down to the present levels. Now the smart ones (ones that have great intestinal fortitude/balls (not gender specific)) look upon this as a small hiccup in the long-term scheme of things (long-term for tech stocks can be five months) and would recognize this as a tremendous bargain. Now all I have to do is to see where last placed my balls... Best of luck, David

To: Bridge Player who wrote (28618)	8/5/1999 9:08:00 PM
From: FlameMe	Respond to of 41369

OT - Reminds me of George Soros' theory of reflexivity. No such thing as equilibrium in stock prices because supply and demand are not independent variables. Stock prices are affected by supply and demand but supply and demand are affected by the stock price. If investors see a stock going up, they anticipate that it will keep rising thus demand increases as the price goes up. Eventually it goes too far, investors anticipate a correction and the process reverses. Sometimes the correction turns into a crash. Leads to many boom/bust patterns in stocks. Ross