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

To: Dell-icious who wrote (11038)	8/6/1998 7:51:00 PM
From: jack rand	Read Replies (3) \| Respond to of 13594

Keith Benjamin of RS seems nervous about contrary response of AOL to earnings report despite all the re-its and estimate/target bumps. This afternoon he re-ited yesterday morning's re-it. 08/06/98 America Online Reiterated 'Strong Buy' at BancAmerica RS Princeton, New Jersey, Aug. 6 (Bloomberg) -- America Online Inc. (AOL US) was reiterated ''strong buy'' by analyst Keith E. Benjamin at BancAmerica Robertson Stephens. The 12-month target price is $124.00. 08/05/98 America Online Maintained 'Strong Buy' at BancAmerica RS Princeton, New Jersey, Aug. 5 (Bloomberg) -- America Online Inc. (AOL US) was maintained ''strong buy'' by analyst Keith E. Benjamin at BancAmerica Robertson Stephens. Benjamin raised his FY99 estimate to $1.05 from 85c and raised his FY00 estimate to $1.50 from $1.20. BUT NOTE THIS FROM JUST A WEEK AGO: the WEEKLY WEB REPORT #30, July 24, 1998 Our valuation benchmark on AOL yields of price of $84, which is just a 50 multiple of our C2001 EPS estimate of $1.72. Today's new $124 target is 48% greater than the 7/24 'valuation benchmark' -- which was based on Calendar 2001 (vs. 2 Q's earlier FY01). Yet FY00 est was raised only 25%. IOW, on FY00E $1.20, $124 12mo target imputes multiple/growth rate of 100, which is double the growth rate cited 07/24. Child's played compared to Jamie 'the reierator' Kiggen late of Cowen, now DLJ. He raised FY00 just 4% ($1.85 from $1.78), but bumped price target to $175 from June's $115. Can't any of these guys just say AOL is "fully valued" instead of engaging in such obvious crap?

To: Dell-icious who wrote (11038)	8/7/1998 2:05:00 AM
From: M.J.	Read Replies (5) \| Respond to of 13594

<<The stock tumbled for the second day on concerns over a continuing investigation by the U.S. Securities & Exchange Commission into the company's accounting practices.>> Has anyone noticed that the stock has steadily dropped 35 points in less than three weeks - well before the earning announcement and news of investigation (is anyone actually surprised)?? A continued plummet even while Nasdaq (home of the rest of the tech stocks) was up 40. Face it. The spell has been broken. Talk about subscriber multiples all you want - that is not any way to value a company. No one really has any idea how long this growth can last. And people are finally starting to do math again. $35 is my generous target... mark my words.