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: Joe E. who wrote (4042)	1/30/1999 3:06:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 41369

Joe, I think if you re-read your answer carefully you will see the point I was making. The market is pricing AOL higher than DIS. The question I ask is whether that pricing makes sense now. In other words, the market is telling us that it expects AOL to be substantially bigger some time in the future than DIS is today. Exactly how much bigger is difficult to say, but my guess is at least 3-5x bigger. Is this reasonable, and if so, can you imagine the cash flows required to support that kind of capitalization assuming AOL is a mature growth company with limited, DIS-like growth prospects ('10-15% pa). TTFN, CTC