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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (14916)	7/24/2002 4:57:34 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78530

AOL is a value stock - imo - because it trades for what the value of Time-Warner alone is worth. However, I base that statement on my guess and media reporting of what "analysts" have calculated Time-Warner to be worth ($15+/sh). Maybe the calculations are right, maybe not. In today's environment with all the shenanigans and bankruptcies, I'm cautiously stating my opinion which is: given the assets that AOL has - music, cable, cable networks, publishing, movies -- it is hard to imagine Time-Warner not being around ten years from now. So I bet that given some time, the stock will recover as the business muddles on, cash flows continue, management gets lucky/smart and makes some positive strategic business decisions, "entertainment/leisure" stocks come back into favor, or some combination of it all. -------------- I added last to my position at $11. If stock drops further, I'll add more. Paul Senior, who has been wrong many, many times (as his investment in this stock appears to prove)

To: Dave who wrote (14916)	7/25/2002 9:03:20 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78530

Dave: Current ratio is a measure of liquidity...there have been no concerns about AOL's ability to meet current obligations..I doubt it's an issue. Tangible book value is rarely a meaningful number for a company built on intellectual property...sometimes it's meaningless for a company built on physical assets...Penn Central went bankrupt with very high tangible book...the assets didn't reflect real value or earnings power....unused tunnels thru mountains. That said, I entered AOL with great tentativeness largely on the strength of other value investors [Nygren, etc] coming in at higher levels based on Time Warner break-up values. I'm probably early or wrong.