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


To: Terror who wrote (36975)1/10/2000 7:12:00 PM
From: CCGoose  Read Replies (2) | Respond to of 41369
 
Just to do the math for comparison sake for the people on this thread whom I have received tons of information from and learned a lot.

given the value of aol (72 5/8) and the value of twx (92 1/4)the combined share value of aol/twx would be a total of 164 7/8.

the value of the new company would be divided as follows 1 aol part plus two twx parts = three shares of the new aol/twx
that value should be equal to 164 7/8 therefore the valuation of aol in sync with twx should be

aol = 1/3 * 164 5/8 = 54.96
twx = 2/3 * 164 5/8 = 109.92

From this I gather there should be a current valuation on aol of 54.96 and a current valuation of twx of 109.92, given that there is currently considerable pressure on aol to go down and on twx to go up. either way even if aol stays at 72 5/8 that should give a current valuation on twx of 145.25.

someone tell me if my calculations are wrong or correct, I hope I was of some help,

this are my calculations only, I sold my aol shares today and bought 50% more shares of twx,

provided this merger goes through there should be considerable upward pressure on twx, and downward pressure on aol,

Please ensure you do your own due dilligence, these were my calculations for my own use,

Good luck everyone
:-)
Chad