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

To: Brian K Crawford who wrote (5735)	11/10/1997 7:49:00 PM
From: Eric Klein	Read Replies (1) \| Respond to of 13594

My experience with these analysts is that they promote the stock when it's at it's height. Look out, though, when it falls significantly. "Isn't it logical to assume..." If the future was amenable to logic, everyone would be a fortune teller. The crux of the matter is that AOL sells for a huge p/e and price to sales. It is incredibly expensive by any measure. I'm sure that there are some possible future scenarios in which AOL is a good buy at these prices. But it would take one of the best scenarios coming true to justify it's current price, let alone a higher price.

To: Brian K Crawford who wrote (5735)	11/10/1997 7:51:00 PM
From: John Kratus	Read Replies (1) \| Respond to of 13594

Brian quotes: From Alex Brown << VALUATION AND RATING: We place a 12-month target price of $115 on AOL stock which equates to a $15 bb market capitalization arrived at by assuming a $750-1,000 per subscriber multiple of 12.5 mm mid-CY 1998 members plus a 10x multiple of our $500 mm CY 1998 adver-commerce revenues. We maintain our "strong buy" investment rating on AOL stock. >> And THIS is the assumption upon which A.Brown recommends AOL? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!