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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Brent D. Beal who wrote (5182)	10/23/1997 2:58:00 PM
From: Harry Larson	Respond to of 13594

N2K just made it. If this is a maket turn, Preview Travel, which owes AOL $12m by 12/01 and needs IPO to pay it may not be so lucky

To: Brent D. Beal who wrote (5182)	10/23/1997 2:58:00 PM
From: MW	Read Replies (2) \| Respond to of 13594

Brent; I'm sure another thing you're very tired of is watching the bulls make a ton of money while you have lost alot. Is aol overvalued? At this point I'm not sure but you've been carrying on about this for at least the last 40 pts. The name of the game is to make money. Whether aol has been going up because of fundamentals or because of momentum is irrelevent. The "bigger idiots" are those of you who have shorted this stock in the face of all of this upward momentum. The idiots who have bought at 40,50,60,70,80 are all firmly in the black. Whether the idiots who are buying now make money is anybody's guess but to go against the tide was and is the wrong move. If it turns out that the bears are right about the co. there will be plenty of time to watch for a stong downturn to jump on to and I will be jumping on with you but to try and guess the top here is futile and you have obviously been very wrong for a long time. MW

To: Brent D. Beal who wrote (5182)	10/24/1997 9:44:00 AM
From: steve lipson	Respond to of 13594

>Based on it's price, investors must be assuming that AOL has more profit potential than MSFT, INTC< Brent, as I have commented to you before, you are confused about the proper way to use P/E ratios. That ratio reflects valuation relative to earnings, essentially solving for the missing variable in the equation which is growth. Small cos. can grow faster than large behemoths, hence they can typically command higher P/E ratios. The P/E ratio is not an academy award for outstanding achievement or the only indicator you need to look at to make a sound investment decision. If you want to know how much overall earning power a company has, all you have to do is look at its market cap, the total that someone would pay to possess all the earnings. On this basis, with well over $100 b each in market cap, INTC and MSFT are 12 to 15 times more valuable than AOL. You can sleep soundly. All's right with the world.