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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (38537)	2/18/2002 7:04:45 AM
From: Joe Stocks	Read Replies (1) \| Respond to of 53068

>>Current "debt" of $13 Billion includes such<< Great post. You make several good points. I agree that AOL has a bunch of good properties. I problem with AOL is just the way the finances are structured for a mature company. This balance sheet would be more reflective a hot new internet company. EBITDA reporting is going to the wayside. I read many financials. The reason I brought up the $13 bil in current debt was that I don't think I have ever seen a company carry 30% more current debt than their total quarterly sales. Remember the focus of the original post was on a "buy and hold strategy. Maybe a "train wreck" was too harsh. Revenues are growing at 8% or less and EBITDA at 8 -12%. With the amount of debt and questionable growth I don't see AOL as a stock to "sock" away. I believe it is worth closer to 2x sales and would not be surprised to see it get there over the next year. Here is an article: biz.yahoo.com Joe