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


To: Don Westermeyer who wrote (11982)11/22/1998 6:58:00 PM
From: Sabrejet  Read Replies (1) | Respond to of 13594
 
With NSCP's declining growth, lack of earnings and market cap currently @$4 billion, is this a good move for AOL? Psychologically, the unknown becomes known and as we all know with high flyers, that means declining stock prices.

On the surface one might think this is a sound move on AOL's part but why sell NSCP at the current price??? Especially when it's a considerable distance from it's all-time high? Is the portal that unique and relevant to AOL's business model or are we seeing a change of thought at AOL. If so, YHOO has the edge. Look at Disneys aquisition of seek. I see this in the same light.

NSCP CEO is getting out while the gettin's good,IMHO.

zebra



To: Don Westermeyer who wrote (11982)11/22/1998 7:22:00 PM
From: Rajiv  Read Replies (1) | Respond to of 13594
 
Usually the buyer's stock (AOL) heads down on such a deal.

What happens is merge arbitrators typically would buy NSCP and short AOL assuming the deal will go through.

OTOH - This is an internet stock so who knows.

Internut stocks do not follow conventional market theories. These stocks thrive on momentum produced by news like this.

Remember the CompuServe acquisition ?

Regards.
Rajiv