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

To: SouthFloridaGuy who wrote (37512)	1/12/2000 11:18:00 PM
From: puborectalis	Respond to of 41369

The once and future king By Tony Perkins Redherring.com January 12, 2000 We've all had a couple of days to digest the enormity of the America Online (NYSE: AOL)/Time Warner (NYSE: TWX) merger, so now it's time to lay out the cards and contemplate what it all means. The implications are great, not only for AOL and Time Warner but also for other media companies, both online and offline, as well as advertising agencies, advertisers, and the general consumer. The fact that now you may go through your whole day receiving your news and entertainment from a property of AOL/Time Warner is one thing, but the Red Eye predicts this will not be the last old-line media/Internet company merger coming down the pike. Another aspect to this deal that so far has eluded the traditional media's eye is that Steve Case, in all his strategic genius, may have bought Time Warner while AOL's stock was trading at its peak. Read on for my thoughts on why Mr. Case rules. I look forward to your impressions. AOL-LELUIA SAN FRANCISCO, CALIFORNIA -- Well, with AOL's announced $166 billion acquisition of Time Warner -- the biggest corporate merger ever, creating the fourth most valuable company in the country -- we all now know who is the ultimate Internet media company survivor. It ain't Netscape Communications, whom AOL acquired in late 1998 for a fraction of its total value. And it ain't Microsoft either. After making lofty predictions about earning billions as a media mogul just a few years ago, Bill Gates started to scale back Microsoft's foray in the content business last year. The reigning Internet king is, in fact, AOL, not only because its newly formed market position will be difficult to topple but also because it has partnered with a company that has a tremendous head start in the cable network arena. Be sure that AOL/Time Warner will be making news soon regarding its broadband strategy. CASE IN POINT But what makes Steve Case such a visionary in this space is the fact that although Time Warner's annual revenues of $26.8 billion dwarf AOL's $4.8 billion, AOL is walking away with 55 percent ownership of the corporate pie. On the surface, of course, this split in ownership stake makes sense. At the close of market on Friday Wall Street valued AOL at $165 billion, versus Time Warner's market cap of $84 billion. But as my brother, Michael Perkins, and I have noted in our recently published book, The Internet Bubble, AOL, along with most other Internet stocks, is grossly overvalued. And as the market activity of the past couple of weeks has demonstrated, the average investor is beginning to recognize this fact. As a case in point, the table below shows that since June 11, 1999, five of the top ten largest-cap Internet stocks have actually fallen in price. And it is our belief that, in time, the stock prices of the other five, including AOL, will finally come back to reality. But Mr. Case was smart enough to get in early, while his stock was still skyrocketing, to take advantage of the Internet bubble and buy some real assets, real products, and real revenues before his time runs out. Mr. Case has made it to the top of the real media world, and he did it just in time.

To: SouthFloridaGuy who wrote (37512)	1/13/2000 12:08:00 AM
From: VBroady	Read Replies (1) \| Respond to of 41369

Prediction: AOL at $45 by month's end. It will rebound from where it is now, back up to $70 or so, then sink. People will realize that they are no longer invested in a pure i-nut, therefore the over-valuations will no longer apply. People can buy AOL for same cost of a year ago. Thanks, Case! Even I agree, AOL is worth $45. vb

To: SouthFloridaGuy who wrote (37512)	1/14/2000 1:33:00 AM
From: David E. Henry	Read Replies (1) \| Respond to of 41369

Puff Daddy you have been indicted for having a loaded gun! lol Now if only we could indict you for shooting your mouth off! I have used AOL since its early entrance in the Geoworks OS! Anybody knows or remember Geoworks Geos? They are gone; but AOL is still here, and king of the Hill to boot! Dont count this Bad Boy out!