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

To: steve lipson who wrote (5354)	10/30/1997 1:13:00 PM
From: IKM	Read Replies (2) \| Respond to of 13594

If this market climbs back to the levels of early last week within a few days, it will be the shortest correction on record. How likely is that to happen? Corrections usually start with a big shock and then slowly erode value, until there is a shift in general sentiment. Valuations are always relative. Those wishing to protect their capital will continue to pull money out of this market for a while. There will be some hard thinking this weekend. If you're a long and staying that way, you better hope that AOL has sterling earnings next week, or the wounds you've already suffered could get a lot worse as gangrene sets in. There are no waves of selling just now. It might be a good time to discretely sidle over to the exit.

To: steve lipson who wrote (5354)	10/30/1997 1:58:00 PM
From: Brent D. Beal	Read Replies (3) \| Respond to of 13594

** >I think you'd have to be a serious moron to conclude that AOL is even half the company that INTC is.< Brent, at last we agree. AOL is not even a tenth of the company that INTC is. Look at the market cap investors have given both companies. I guess that means you see some substantial upside as AOL would have to go up to $300 or $400 a share to approach being half the company that INTC is. * You misunderstood my comparison, AOL isn't 1/2 the company INTC is on a per share basis--hell if we're comparing net earnings, then AOL isn't even a pimple on Intel's butt. This makes my point all the better--any moron that attempts to argue that AOL is at all fairly valued has to rely some sort of ridiculous evaluation of potential, but the fact is, that on a per share basis, right now INTC is earning more than AOL will ever earn (OK, maybe with an extremely rosy scenario, AOL might be up to $4 a share about 50 years from now). So, why, on a per share basis (which is the only way stocks are sold), is AOL selling for the equivalent of INTC--I'll help you out. . . it has to do with tulips and bigger idiots.