To: RocketMan who wrote (5066 ) 2/15/1999 8:41:00 AM From: Venditâ„¢ Read Replies (1) | Respond to of 41369
From November buy it makes some good points:AOL a Buy with or without Netscape (AOL) Friday, November 27, 1998 A year ago, growth stock Stephen Quickel rationalized his purchase of America Online (AOL) by saying the firm's earnings upsurge was powerful enough to make up for its astronomical P/E. He's glad he did. AOL stock surged from $85 in early October to $150, split 2-for-1 last week, then rose post-split to over $90. Quickel credits AOL's accelerating bottom line for the surge. AOL's recent announcement of merger plans with Netscape and an alliance with Sun Microsystems does not alter the basic picture for Quickel. "Until we know a lot more about the AOL- Netscape linkup, and the role Sun will play in this picture, it is best to continue to evaluate AOL on its own merits -- which are considerable," Quickel says. Noting that AOL stock trades at 50 to 60 times estimated earnings, Quickel says "there is more risk than reward in looking for additional reasons to pay a lot of money for the stock. He adds that he is content to own AOL considering a pre- Netscape earnings horizon of $1.70 per share, "which will doubtless be advanced to $2 to $2.25 per share in the months ahead even without a Netscape deal." He sees AOL topping $120 "in the foreseeable future," though he now maintains a more conservative $105 price target. "Until the picture becomes better focused, AOL is the only sane stock to own in the Internet group," Quickel says. For more on Stephen Quickel's recommendation see "The USIR Recommended List," November 16, 1998, US Investment Report. Stephen Quickel identifies growth stock opportunities and uses rigorous stop loss techniques to capitalize on momentum while minimizing risk.