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


To: CCGoose who wrote (36980)1/10/2000 7:22:00 PM
From: Ritch  Respond to of 41369
 
Chad -

I'm not sure what you were trying to do with your calculations, but if the deal was closing tonight with AOL at 72 5/8, TWX would be worth $108 15/16.

If you want to work backwards and say that TWX is fairly valued, AOL should be worth $61 1/2 based on TWX price of 92 1/4.

Adding the share price of AOL to the share price of TWX makes no sense. The only calculation to make is multiply AOL times 1.5 to get valuation of TWX.

Ritch



To: CCGoose who wrote (36980)1/10/2000 8:02:00 PM
From: David S. Bye  Read Replies (2) | Respond to of 41369
 
Your math is wrong. It assumes that the stock swap is 2:1 instead of 1.5:1. Think clearly before you panic.