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

To: vegetarian who wrote (5811)	11/12/1997 10:05:00 AM
From: The Duke	Respond to of 13594

there doesnt seem to be that much reaction to this, mostly we seem to be moving with the market. (unusual for AOL)

To: vegetarian who wrote (5811)	11/12/1997 10:07:00 AM
From: jeff c.	Respond to of 13594

i especially love how the specialist is overly optimistic w/ his upticks....but then he has to correct himself....still, it allows those shorts to go off...so I can't complain j

To: vegetarian who wrote (5811)	11/12/1997 10:25:00 AM
From: IKM	Read Replies (2) \| Respond to of 13594

Think about it. You buy that paper, then you can short AOL til the cows come home. If by chance it catches fire and runs through your strike price (guffaw!), you can convert and deliver the shares.

To: vegetarian who wrote (5811)	11/12/1997 1:53:00 PM
From: J.S.	Read Replies (1) \| Respond to of 13594

Who would buy these conv. debs. at this price, on the one hand? Why should AOL need to raise potetially dilutive capital now? One explanation is the negative working capital. Eventually one has to pay off the creditors or convert the debt to long term debt. Current creditors may take less than favorable terms so as to get anything at all. Also the creditors as a whole do not want to drive to contribute to the companies demise. It may be AOL's current creditors who are the buyers of these notes in exchange for current debt. In any case, this will be the net effect whoever is the ostensible buyer. The whole deal is probably being closely coordinated by AOL underwriters/bankers so as to put AOL on a more sound financial track. I hate to admit it. This is great news for AOL. Even if these things end up getting converted, 3 million shares would be peanuts and a flight above the 100 mark would easily absorb any short selling based on this deal. My hat is off to Case & Co. He could be the CEO of my company anyday. Oh well, Joe