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


To: Smart Investor who wrote (9922)5/7/1998 1:06:00 PM
From: Keith A Walker  Read Replies (2) | Respond to of 13594
 
A very interesting piece on the effects of options grants to employees and the dilutitive effects on future earnings appears in this month's Forbes, May 19, 1998. (I will provide a link as time permits) This article is a MUST read for all long-term investors.

AOL, among others (including MSFT) could be seriously impacted if the options that have been granted are exercised at the same time. Microsoft would actually have to come up with over $10 billion in cash.



To: Smart Investor who wrote (9922)5/7/1998 1:13:00 PM
From: shag007  Read Replies (1) | Respond to of 13594
 
A charge is separated from income b\c it is not part of operating results. It has to do with acquisitions,mergers,cut backs,layoffs,etc. etc... AOL had .16 of operating earnings. Next quarter they will take a 21 million special charge for the purchase of netchannel. <--- Not part of operating results.

FDA

p.s. the .08 was a 35 mil. or so charge for the compuserve ans deal.