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

To: Louis Riley who wrote (5975)	11/15/1997 3:29:00 PM
From: Steve Robinett	Read Replies (1) \| Respond to of 13594

Louis, I'm not a big TA guy. I take it into consideration because there are so many people who act based on charting that it becomes something of a self-fulfilling prophesy, especially in the short term. Essentially, TA is a lazy way to analyze stocks, much easier than understanding fundamentals. As you may know from looking at my earlier posts, I think AOL is overvalued. For reasons that are beyond the comprehension of my BB-sized brain, every major brokerage house on Wall Street loves this stock. They probably find it easy to sell to retail and institutional customers, a brand-name franchise. They can also make a ton of money trading it for they own accounts. I would suggest that broken trendline or no broken trendline, Wall Street is pushing this stock again. I think it will see the high 70's by the end of this coming week. I say this as someone who is not currently positive about AOL's long-term prospects and who has played both the short and long side over the last week or so. They still haven't shown me that they can leverage their customer base in any meaningful way. Someday, they might, but not yet. In any case, since Wall Street is currently loving up this stock, I wouldn't bet on the short side yet. Best, Steve