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

To: William F. Wager, Jr. who wrote (13488)	1/26/1999 9:10:00 PM
From: William F. Wager, Jr.	Respond to of 13594

"Whisper"AOL,online services company due to report earnings tomorrow after the bell. Based on First Call survey of 31 analysts, company expected to have made $0.14 a share for the quarter, representing an increase of 180% over the year-ago period. AOL is one of the few Internet companies that market does not always expect to report blow-out earnings. Over last four quarters, AOL has exceeded analysts' views by an average of 17%, compared to an average upside surprise of 66% reported by Yahoo! over the same period. Talk among analysts is that company likely to exceed expectations by about 2 cents or 14%. AOL shares have rallied 152% since last report. During that period, the stock has been added to the S&P 500 and the company has announced the acquisition of Netscape Communications (NSCP). Based on projected 2000 earnings of $0.87 a share, stock carries a P/E of 177. In spite of corpulent multiple, stock will continue to be favored by money managers, based on Internet affiliation, robust growth, predictability and discounted valuation relative to other Internet stocks (on a price/sales basis). Of course, stock's near-term outlook will guided by overall Internet group sentiment. But like Yahoo!, investors will continue to view pullbacks as an opportunity to (re)enter stock. In a bull market, investors don't lose confidence in companies until they begin to disappoint. No disappointments on the horizon here. Briefing.com