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

To: steve lipson who wrote (8288)	2/26/1998 10:16:00 AM
From: Harry Larson	Read Replies (2) \| Respond to of 13594

OK. So tell us why institutions bought the bonds. You're saying they're stupid.

To: steve lipson who wrote (8288)	2/26/1998 10:20:00 AM
From: yard_man	Read Replies (1) \| Respond to of 13594

You're right the article is indicative of the quality of a lot of the so called investment news on the internet. The only shred of truth in the article was that the same folks hyping the stock benefit by doing so. We already knew that. That said, I am curious as to how many have converted and how may are waiting for more upside.

To: steve lipson who wrote (8288)	2/27/1998 6:45:00 PM
From: J.S.	Read Replies (1) \| Respond to of 13594

Steve, I think you are forgetting risk in your analysis. The percentage gain of the bondholders can't be compared directly to the stockholders. The article is not well written. What is probably the case is that these bond holders made out proportionally better relative to other bondholders then the stockholders did to the corresponding stockholders. You need to keep in mind that an investor given a choice would probably put more money in a bond then in a stock of company like AOL. The choice might be say between $50,000 GNMA $20,00 AOL stock and $70,000 AOL bond. In that case, the second option yields the greater "piggish" gain. Joe