Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: STOCKaHOLIC who wrote (3701)	1/27/1999 6:54:00 PM
From: RocketMan	Respond to of 41369

If AOL had Yahoo's price/sales, AOL would be over $1000.

To: STOCKaHOLIC who wrote (3701)	1/27/1999 7:04:00 PM
From: Smart Investor	Read Replies (1) \| Respond to of 41369

What do you mean HUGE increase! AOL has not moved since the end of last year while other weaker net stocks (YHOO, AMZN, SEEK, eBay, ...) doubled or moved up at least 50%, it is time for AOL to catch up. One just can not understand why anyone would buy other phony net stocks while AOL is cheaper and has more potential. I guess there is always people who bought AST rather than DELL. It is time to buy AOL and ditch other Hot Air net stocks. AOl is the real thing.

To: STOCKaHOLIC who wrote (3701)	1/27/1999 7:06:00 PM
From: Joe E.	Respond to of 41369

Now that AOL has revenue growth less than 100%, it is closer to the day when it will be valued as a regular company. However, since profit growth is still >100% (by quite a ways) AOL's P/E is meaningless. Eventually profit growth will = revenue growth, more or less, and both will be less considerably than 100%. Until then P/E's matter little. This is my opinion based upon watching how stocks are valued over the last several years. When growth is very fast, it seems the company might indeed grow to the sky. The valuation is based as much upon the size of the market in which they participate as upon the specific company results. When growth slows to a more normal pace, there are too many comparables around and variations in price are more easily arbitraged out. Damn few public companies are growing either revenue or profits >100% per year in a way that looks like it can continue for an extended period of time. AOL is one, but is starting to to look more normal, more like say Microsoft or Cisco. Not yet, but soon. Say a couple of years. So right now, the sky is almost the limit, because nobody in their right mind can short a substantial amount of AOL unless they hold Netscape or AOL options (OK, they could have S+P options or futures if they are big enough.). Enjoy the ride!!