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To: MaryinRed who wrote (184)	2/14/1999 8:41:00 PM
From: Graeme Smith	Respond to of 419

I ended up skipping a lot of this thread, so I may have missed some of the discussion, but no-one seems to have talked about what AOL's potential profit margin might be. Rather than talking about the growth in earnings required to justify its current price, I think it would be easier to ask what is AOL's ultimate net profits, and what growth in revenues would be needed to justify AOLs price. For instance if AOL eventually achieves a net profit of 30% and we assume an eventual PE of 25, it would have to quadrupal its revenue of the next few years to justify todays price. Graeme