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

To: John Albert Moro who wrote (6361)	12/11/1997 11:03:00 PM
From: Investor-ex!	Read Replies (1) \| Respond to of 13594

Hi JAM, As I've said before, sometimes (no, make that frequently) logic + market = twilight zone. Trying to rationalize every twist and turn every day is an exercise in futility, whether long or short. Make your assessment, pick an entry point, hedge, cut your losses if the story changes materially, or hang in there if it doesn't. If nothing else, if one can learn to deal with the likes of AOL on the short side, shorting nearly anything else will seem like a Sunday picnic without the ants. :-D

To: John Albert Moro who wrote (6361)	12/13/1997 1:44:00 PM
From: John Albert Moro	Read Replies (2) \| Respond to of 13594

To Everyone: The way AOL's share price has been behaving these last two weeks you would think that it has proprietary access to the Internet, mind you the sector is hot right now and it is only a question of how high these pups will go till the bubble bursts. If you check AOL's Balance Sheet you will find that their Current Ratio, a measure of how well a company can meet its short term obligations (Current Assets: Current Liabilities is .65:1 which is abnormally low for any industry type. No wonder they just borrowed 550m., there must be some problems in paying off their current bills (all that advertising and promotion costs money you know). Another item of interest about their Balance Sheet is lower depreciation for the last couple of years in a period of higher revenues, which may indicate declining investment in networking infrastructure (let's hope their present servers can stand the hits of those 10m. subscribers and climbing). And oh yeah, their short interest on 11/15/97 was 9,050,000 shares, this figure is probably higher given the activity of the stock in the last couple of weeks. It also might be that massive short covering has recently taken place as players cover their shorts strictly out of frustration with the stock's reluctance to go down so as not to lose the opportunity to short elsewhere while at the same time new shorts have entered the game. Coupled with all these upgrades have provided an ideal climate for the stock to climb to its present lofty perch. JAM