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

To: lawrence lerner who wrote (10187)	6/4/1998 3:35:00 PM
From: Glenn D. Rudolph	Respond to of 13594

Yes, indeed. 2900 members responding out of a purported 12 million certainly sounds like a clear message to me. Yes, indeed. 2900 members responding out of a purported 12 million certainly sounds like a clear message to me. Real clear<G> Glenn

To: lawrence lerner who wrote (10187)	6/4/1998 3:35:00 PM
From: Harry Larson	Respond to of 13594

Subject: AOL CFO Speaks On Cap Gains (from Motley Fool Board) Number: of 1146 Author: wlark Date: 6/4/98 11:07:15 AM (ET) Wall Street Journal America Online also has persuaded Wall Street to accept an unusual rationale for treating some capital gains from stock sales as regular earnings. AOL quite reasonably considers such stock-sale gains "payment for services rendered," says Friedman Billings Ramsey analyst Ulric Weil, an AOL bull. ----------------------------- AOL's official transcript of the Q1 conference call (available on AOL) contains detailed description by CFO Leader of accounting for stock received in payment for services. Basically, the value of the stock at the time of the deal is accrued as revenue over the term of the deal. ACTUAL SALES of the stock ARE ONE-TIME CAPITAL GAINS; the cost basis being the value of the stock used for revenue purposes. In other words, AOL didn't try to persuade analysts to accept an unusual rationale. Analysts simply failed to exclude from their earnings gains from sales of stock in Q2 and Q3(of the same type as they did exclude in Q1)