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


To: Tim Kenney who wrote (5775)11/11/1997 5:07:00 PM
From: Ob C Qwe US  Respond to of 13594
 
I'm heading over to AOL to see how the Motleys try to put a positive spin on <this> one....... (VBG)



To: Tim Kenney who wrote (5775)11/11/1997 5:08:00 PM
From: Investor-ex!  Respond to of 13594
 
Tim,

How do you think debt service on $300Mil will impact earnings going forward?



To: Tim Kenney who wrote (5775)11/11/1997 5:08:00 PM
From: IKM  Read Replies (3) | Respond to of 13594
 
The convertibility feature allows AOL to borrow money at below market rates for non-convertible debt. The bond purchasers will short the stock and use the money received, safe in the knowledge that they can convert at the convertible strike price. This is a strong short-term negative for the stock. Wonder if this is why the CEO and CFO sold so much stock in September?