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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Frank Ellis Morris who wrote (1880)	1/7/1999 6:30:00 PM
From: Voltaire	Read Replies (1) \| Respond to of 41369

Hi Music Man, Now listen gang, this is real simple. First of all you have to understand something that I have talked about many many times on SI, CONFIRMATION. Here is what has taken place. AOL was the first Internet stock that was confirmed by Wall St. In other words the Greybeards could finally in or on a public forum recommend it. The entrance to the S&P club was the final confirmation. When that happened there was a semi-confirmation for the entire internet sector. So this semi-confirmation made all of the first tier internet stocks, AMZN,YHOO etc and then the third tier with the extremely low floats even more attractive. In other words we are in a very forgiving period. When the market was down this morning, I sold my AOL and bought back my call and bought AMZN at an average of around $136 per and absolutely kicked ass. I will be back in AOL when the forgiving period is over. Selah, Voltaire

To: Frank Ellis Morris who wrote (1880)	1/7/1999 6:51:00 PM
From: RocketMan	Read Replies (2) \| Respond to of 41369

Frank, it's not fun to watch these internuts go up while AOL sits there. Even though AOL's consolidation does not bother me, it is normal to feel left out when you see other similar stocks zooming up. Today I bought a few shares of YHOO and AMZN as a psychological pacifier. Not enough to make any difference to my portfolio, but if they keep going up I will be happy, and if (when) they crash I will not be wiped out. I am not that much of a gambler, not lately anyway, having been burned too many times on high flyers. I am mainly invested in AOL, along with ATHM, MSFT, comm stocks, and a few high rollers. Hey, check out DISH, I added to that position today. AMZN, EBAY, and YHOO are moving from momentum, fed by day traders, short covering, and gamblers. Most of this crowd left AOL when it became an index stock. As far as the S&P, a lot of people have spoken about whether the index funds have bought all their holdings or not, etc. One thing that has not been discussed is that with a stock on the index, these index funds must keep buying and buying steadily, driven by paydays! In other words, 401, 403, and other company retirement plans usually set aside a percentage of salary for the employee to invest, and that is invested each payday. So there are billions of dollars flowing into these funds, and a large percentage is targeted to index funds, which must keep buying AOL in a proportionate amount to their weighting on the index. So in mid-January, expect another huge amount of buying to come in, not all at once, but spread out over the rest of the month. Talk to me at the end of the month. If we are not significantly higher, I will eat my hat, except I don't wear one :-)