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

To: Pancho Villa who wrote (8235)	2/25/1998 11:42:00 AM
From: Kerry Phineas	Read Replies (1) \| Respond to of 13594

Pancho, I was short during all the October/November weakness (first third) but didn't cover because I thought it was going MUCH lower. AOL was just about the only short position that I didn't cover, and it has definitely hurt(the other was Yahoo). I also had some put positions during that period that quadrupled but that I didn't sell. (ouch.) This has definitely been an odd bull market, but the forces that are keeping the general market up right now will erode: our interest rates are artificially low as a result of the Asian debacle, earnings are overstated as a result of options scams and funky accounting, analysts are feeling their oats and blatantly supporting short squeezes for whatever reasons, and the public has the idea that the fundamentals don't matter that much and that the current situation will continue forever. If AOL actually has a rational acquisition strategy to go along with the bubble stock price, a lot of the bears could really get screwed; not that the short position is really that bad, though. (Compare it to MU, which I'm also short and which has much worse fundamentals, and the short position is very low.) A lot of when either one crashes depends on the overall market, imo.