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

To: Jules B. Garfunkel who wrote (11430)	10/12/1998 4:03:00 PM
From: Steve Robinett	Read Replies (2) \| Respond to of 13594

Jules, Re: AOL split. I agree the proxy cover letter is wishy-washy and inconclusive. On the other hand, you can't expect a company to flat-out announce a stock split before the board has authorized the split. AOL obviously uses shares for options, for convertible debt issue and perhaps for acquisitions but 1.2 billion shares when the float is 200 million and change suggests a split. Also, historically, AOL has had splits in rapid succession, on one occasion twice in one year. Keeping the stock price around $50/share, a price that's good for both individual shareholders and institutional shareholders, is most large corporation's game plan. Of course, if one were paranoid, one could read the cover letter as a come-on to get people to authorize the shares by dangling the possibility of a split under shareholder noses. Best, --Steve