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

To: jack rand who wrote (11268)	9/11/1998 11:01:00 AM
From: Steve Robinett	Respond to of 13594

Jack, Nice to talk to you again and you're right on both counts. The Sprynet cash is a balance sheet item, not dropped down to the bottom line ( my mistake) and AOL's advertisers are impacted by Asia. Print advertising is something people watch to track the economy. (When my LA Times weighs generally a little less, I know we're slowing down.) It will be interesting to see any impact on cyberadvertising of a slowdown that affects print. As for AOL, analyzing it on fundamentals is almost impossible. Though they have cleaned up their financials to satisfy Wall Street and gain various chunks of financing compared to a few years ago-they no longer capitalize as many expenses as they used to and vice-versa-the big issue is obviously valuation and on that point it is pure pie-in-the-sky valuation, speculation that AOL will continue to dominate Internet access for at least a decade. Still, the religious fervor (pro and con) around AOL makes it a great trading vehicle. I've traded options on AOL three times this week-calls twice, puts once-and done just fine but I would neither own the stock outright long or short it. Both are too dangerous. Best, --Steve