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

To: Steve Robinett who wrote (3348)	1/25/1999 8:20:00 PM
From: B Hewson	Read Replies (3) \| Respond to of 41369

AOL down in afterhours trading. 142 5/8 per Dailystocks.com/afterhours. Anyone know why?

To: Steve Robinett who wrote (3348)	1/26/1999 9:14:00 AM
From: RocketMan	Read Replies (2) \| Respond to of 41369

I was refering to the analysis done by Merryl Lynch's J. Cohen: We are this morning reiterating our Buy/Buy rating on America Online shares. At the same time we have increased our near-to-intermediate term price target for the company's stock to $195 per share. Our new price target is based on the application of a multiple of 22.5x our estimate of the company's calendarized 1999 revenues of $4.45 billion dollars (the company's fiscal year ends in June). That multiple is intended to reflect the results of a traditional DCF analysis, and is consistent with our revised long-term operating margin assumption for AOL of 20% (our previous estimate had stood at 15%). You say: ...the valuation assumptions anyone makes--including professional analysts--are speculative at best and more likely wishful thinking. There really are ways to value companies, but wishful thinking is probably the worst way. ML does not get everything right, but they don't stay in business for as long as they have by basing their recommendations on wishful thinking.