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

To: Buster O. Hype who wrote (11617)	10/27/1998 9:19:00 PM
From: Jorge	Respond to of 13594

Buster...Your "Overvalued", "Can't POSSIBLY Grow MUCH MORE Than____(you fill in the blank)".......Sounds just like the DELL Bear arguments over the last few years I've owned DELL...You're wrong, the Street (all investors collectively as a whole) keeps rewarding them and will keep rewarding AOL, far beyond your smallish estimates. Regards, George

To: Buster O. Hype who wrote (11617)	10/27/1998 9:28:00 PM
From: Buster O. Hype	Read Replies (2) \| Respond to of 13594

THE AOL vs. YAHOO DILEMMA AOL reported about 3X more advertising/E-commerce revenue today than YAHOO did in its most recent quarter. So should AOL be valued at 3X YAHOO or about $36 billion. This would imply the $3 billion a year revenue AOL gets from its subscription base worth only $6 billion in market cap. Perhaps, AOL's advertising/e-commerce revenue should be valued as much as YAHOO's at about $12 billion. Then the subscription revenue would be about 6X revenue. But then, this would mean that when Yahoo triples its revenues, it's market value shouldn't grow any more. I guess, the obvious play is buy AOL, short YAHOO and hold positions for a year.