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


To: im a survivor who wrote (28620)8/5/1999 6:57:00 PM
From: RocketMan  Read Replies (3) | Respond to of 41369
 
Agree with you, KG. What I have a problem with is someone planting rumors around the press or in chat rooms to drive the price down. If MSFT wants to offer free ISP, fine, let the battle begin. But for the press to write that this is going to happen, when it is one of probably a million possible strategies for them to pursue, is playing the game by breaking the rules. Same thing with the false Barron's report.

Now, about reduced/free ISP, the problem is one of economics. There is certain level below which the losses from providing 56k or higher infrastructure is not offset by e-commerce gains. AOL has determined a price of 21.95, including whatever profit margins they want to have. Can someone offer $15 unlimited service? $5? $0? Sure, NetZero is trying to do it, but they are bleeding red. MSFT can afford to bleed red longer than NetZero or AOL, but eventually economics kicks in. I have no problem with the WSJ or anyone else laying this out for investors to contemplate. What I have a problem with is the blatant manipulation that has been going on. I guess the SEC does not go after the big boys, though, only the pennies.