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To: Olu Emuleomo who wrote (28936)	12/4/1998 5:20:00 PM
From: cellhigh	Read Replies (2) \| Respond to of 164684

and i will,todays buy was a most moderate position subject to daytrade if we ever see those levels my bet will be larger.

To: Olu Emuleomo who wrote (28936)	12/5/1998 12:57:00 AM
From: Mike M	Read Replies (1) \| Respond to of 164684

I don't disagree with your analyses....but I bet the low for this move holds in the 165-175 area....though, I would rather see the support in the area you are looking for..... Mike

To: Olu Emuleomo who wrote (28936)	12/5/1998 11:40:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Mt. Hood, Oregon Making Regulatory Hay News that an Oregon-based cable television regulatory body (in Mt. Hood) ruled that TCI should allow ISPs access to the company's @Home Network made some waves in some circles, though weíre somewhat hard pressed to see whatís so cataclysmic here. Though we do tend to believe that broadband, as a technological shift, could be one of the most important shareholder value re-shuffling events the Street has seen in the last handful of years (please see our last Internet Capitalist, dated 11/20/98), we tend to believe that markets, not regulatory bodies, will provide the solution to who gets access to which pipes. Though AOL has been one of the most vocal critics of the TCI-@Home relationship and is lobbying for open access to cable plant, their lobbying efforts provide some media grist, but ultimately should prove to be a sideshow, since we believe that market forces (like who has the greatest subscriber base, who controls the online customer relationship, etc.) and economic incentives will force plenty of cable companies into some form of partnership with AOL. The debate wonít be about if AOL will get access to cable pipes, but rather, under what economics will AOL make a deal with cable providers. From our seat, we tend to believe that AOL is holding many of the cards here, and will strike a deal whose economics reflect this reality. Trend Watch Internet As Consumer Medium To regular readers of The Internet Capitalist, it should come as no surprise that we believe that the Internet is fast on its way to becoming an entirely new consumer mass medium. Indeed, our overall bullishness for the sector and the companies representing it rests squarely on this emerging trend becoming reality. Because most of the Street has been caught up in the AOL/Netscape/Sun transaction, some folks may have missed an important release from AOL and Roper Starch (the well known marketing research shop) that provided the most exhaustive detail yet of the motivations and attitudes of consumers who are active online Internet/online users. The results arenít necessarily startling, since many of us have believed that the Internet was taking on an important role in consumersí lives. Perhaps most surprising was the consistency with which this conclusion must be drawn from the data, some of the more important of which we present below. Among other important findings, the study revealed several important findings: 80% say the Internet makes activities easier and more convenient (an absolute pre-requisite for any consumer-oriented service/product today) 44% suggest that online is a necessity to them, 87% would ìmiss itî if removed (television and cable went through much the same want/need transition) 80% of users have suggested to friends and family that they get online (quantitative proof of the ìnetwork effectsî of increasing returns) Compared to other Roper research, the results suggest that Internet/online has now surpassed VCRs, stereo systems, and cable TV as a necessity for that demographic with access to all three As a medium, the Internet cuts across demographic boundaries; roughly 50% of both >50 year old and 18-24 year old groups suggest that they would ìmissî the Internet if it were taken away from them (the true test of any new mediumís importance is how universal it is) 42% of online users have college degrees (vs 22% in the US population), median household income stands at $60k/year (vs $34K/year for the US population), 69% of those online are married (vs 57% for US population), and 48% have children under 18 years old (vs 32% for the US population). These statistics act as major incentives for large advertisers (P&G, Unilever, Coke, McDonalds, Chrysler, etc.) to start to take this medium seriously by spending a meaningful part of their marketing budget via this medium. 43% of online users say they watched more TV before going online, and 50% indicate that they expect to get more news and information from the Internet in two yearsí time (a statistic that television advertisers will most certainly find interesting) 45% of respondents have made a purchase online, 31% make regular or occasional purchases (like information or entertainment consumption on the Web, commerce builds with time, making the size of these figures that much more bullish) The top four online activities are telling: research (91%); communicating with friends/family (87%); getting news (73%); and getting information about products to buy (71%). Just like other important media, then, the Internet is starting to matter to consumers in a way that cannot be ignored by marketers and retailers. Though this data doesnít make us believe that advertisers will be any more aggressive than they already have been in ìportingî their marketing dollars to the Web (recall that about $2 billion in Web advertising will be completed in 1998, more than double 1997ís levels), these figures will not go unnoticed by Madison avenue. Which presents yet another incontrovertible piece of evidence for our bullishness about the December quarter advertising and retailing environment.