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

To: Lynn who wrote (3926)	1/28/1999 8:23:00 PM
From: Jorge	Read Replies (2) \| Respond to of 41369

I'm not going to address everything you mentioned in your first post but I will say that AOL doesn't have to be a Gorilla (if proprietary is the distinctive requirement of one) to be hugely successful...For instance DELL, some have said, is "just a box-maker", that any body can become a boxmaker, so they are not a Gorilla....Well, how would you like to had invested $10,000 7 years ago in this "just a box-maker"?...You'd be somewhere between 3-4 million dollars wealthier now. AOL, I believe is similar to DELL, in that while there are no so-called barriers to entry (although try to turn a company into another AOL and see how easy it is) AOL has done all the right things, and is still doing them, to make them the distinctive leader...Also, just as there is GTW, IBM, CPQ, HWP and other boxmakers who are also successful AOL will not be the ONLY successful "Internet" company in the future... I'm invested in AOL, because like DELL, I believe it will yield fantastic returns during the next few hyper-growth years...There will be others that will be good investments also, but for me my style is to invest in the leaders in any sector. Regards, George

To: Lynn who wrote (3926)	1/29/1999 10:29:00 PM
From: Kelvin Taylor	Read Replies (1) \| Respond to of 41369

Hi Lynn! Nice to see you here on the AOL thread. This is my first post here and I just wanted to comment on your great post. I doubled my position in AOL earlier this week because of several developments in the company as well as the current stock performance. Although I agree with your assessment about AOL as an ISP not being proprietary, AOL has a distinct advantage over some of its competitors in turning a profit and the validation of confidence by Wall Street by adding stock to the S&P 500. Now the purchase of AOL is “mandatory” by index funds. Also the company acquiring Netscape is probably only the first step in its long-term acquisition objectives. Gaining market share by alliances is key in this competitive market. As a stock one can't argue the power of compounding. 1000 shares bought at the IPO of $11 in 1992 would now be worth $5.2M(as reported this week on CNBC). Wow, what a nice return! And the company has decided to split the stock now twice in only 3 months! Now what about valuation? Is the stock come too far to fast or is the stock simply representing the limited supply and strong demand for inet stocks? I am a member of the latter camp. I have concluded that a stock, any stock, is worth as much as someone is willing to pay for it. I know that sounds very plain, but with regard to inet companies profitability does not factor into the price paid. Most are bleeding money. AOL is beating earnings estimates and adding new members at a blazing rate. It took the company 9 years to reach 1M subscribers. They added 1.5M just in the last quarter of '98. I'm sure there is room for Mindspring and other ISPs. But as it appears right now, AOL has become the latest darling of the Street. As with all the tech stocks that have had a raging run here lately, a breathing period is in order. Looking forward over the next several months earnings and publicity will keep the stock rising albeit a bumpy climb. Kelvin