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

To: Pancho Villa who wrote (7816)	2/13/1998 12:22:00 PM
From: cruncher	Read Replies (1) \| Respond to of 13594

Pancho Villa: Not at all! Unfortunately I am still long on IOM and I am talking from experience on being a pig. regards cruncher

To: Pancho Villa who wrote (7816)	2/13/1998 12:27:00 PM
From: PAL	Read Replies (1) \| Respond to of 13594

Pancho, AOL has the tendency to include deferred revenues for the current quarter to make current quarter looks good, like beating street estimates which probably include one time gain (like profit from selling Excite stock). Then next quarter that same deferred revenue is included again so that that quarter looks good again. The game does not stop there: the previous quarter is restated by removing that deferred revenues so that previous revenues looks bad. That gives the imopression that sequentially quarter to quarter AOL makes a big improvement in revenues and bottom line. The SEC did look at this, and AOL promised to discontinue this practice by saying: "we are doing conservative accounting", yet there is no breakdown for that 17 c/share, how much is it from continuing operations and how much for one time gain.