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


To: Raymond who wrote (9874)5/6/1998 11:17:00 PM
From: shag007  Respond to of 13594
 
Go AOL!!!!!!!!!! FDA <<eom>>



To: Raymond who wrote (9874)5/6/1998 11:32:00 PM
From: Andrew Furst  Read Replies (2) | Respond to of 13594
 
Raymond, I agree with your comments. I especially like the cash flow figure, which is probably the best way to evaluate a company like this one. AOL appears to be pricey by some measures, but still has a market capitalization under $20 billion. It's the clear #1 "brand" in online services, a market still in its infancy. In 5-10 years, the current share price and market capitalization will look cheap, IMO.

I had not previously looked at the AOL thread on SI, and was surprised there are so few bullish comments. As a contrary indicator, I feel that's a positive sign. Of course, I'd love to see the share price fall dramatically - so I can buy more stock at a "discount".



To: Raymond who wrote (9874)5/7/1998 12:57:00 AM
From: Harry Larson  Read Replies (2) | Respond to of 13594
 
Accounting cash flow means diddly.

>>AOL generates postive cash flow of $200+ mil from operation

What matters is EBITDA, which is about $88 million, or $0.36 per share. Annualized is $1.44. At $88, AOL is trading 60 x EBITDA.

And didja notice the new item "Deferred Network Services Credit"
which accounted for $0.05 per share of earnings.