To: Jorge who wrote (2831 ) 1/18/1999 2:02:00 AM From: THE PHANTOM Read Replies (4) | Respond to
Jorge: First let me say that I continue to be long with AOL and have; let's just say, many shares. One must understand though that when the net stocks correct, and I assure you they will, AOL will go with them. Check out August/Sept. 1998 when AOL went from approximately $140 a share to about $70 a share. There is no way net stocks like Yahoo, Amazon, etc. are going to continue carrying the PE ratio's they have now. Yahoo last week went from a high of $445 a share to a low of 304, closing at 317. That's how volatile they are. AOL while in my opinion is far and away the best internet stock, it nevertheless will correct significantly like the others will. Maybe not as much, but it will be significant, i.e. 30%-50%+. It's a great stock and I have always said that I consider it the next Microsoft, but it is very high right now. There are many professional traders on the outside waiting for the correction to buy in. My dilemma right now is deciding whether to sell tomorrow, this week, or wait for the earnings report to come out. I am sure it will be very good, I just am not sure when the other net stocks will correct. I hope several weeks after AOL's earnings come out. If the net stocks don't correct by March (I think they will), just wait until March when the insiders of, I believe either Yahoo or Amazon can sell their restricted shares. I believe that is when the bath will occur if not beforehand.
