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: Vendit™ who wrote (8605)	3/30/1999 8:19:00 PM
From: Smart Investor	Read Replies (3) \| Respond to of 41369

I do not have a target other than a stop loss. I am shorting because I think the run-up is absurd and unjustified. Based on current revenue, gross margin and future growth rate, AOL should be at 75-90 level which it has been residing for a while before this run-up caused partially by mutual fund manager window dressing and momentum trading by day traders. Remember many idiot analysts have been upgrading ETEC recently. After today's announcement, we will probably see ETEC going down 30-40% tomorrow. How about eBay? When people realize how terrifying a competitor MSFT can become for AOL, AOL will go down the road of eBay. I am waiting for that moment of truth.

To: Vendit™ who wrote (8605)	3/30/1999 11:40:00 PM
From: ChinuSFO	Read Replies (1) \| Respond to of 41369

There is debate on this board about the valuation of AOL. Way back in 1972, three engineers got together to take on the mighty giant, IBM. They formed a small company called Intel (INTC ticker symbol). There 4-bit and 8-bit processors held the promise, and nobody at that time gave it the attention it was due. Little did all the experts and theorist realize that Intel's technology would change the way people conduct business and live their lives. And then there was Cisco and Microsoft which basically provided the same impetus to change. The Internet is the next wave of change. Leaders in this field include AOL. It represents the Internet community. Heard about the Melissa virus guy. Not all that computer literate and that is why he uses AOL. Poor guy had his account hijacked. So my point is there is a beeline to be a part of the cyber community, exchange e-mails, chat with buddies, buy a merchandise or two etc. etc. And where else to do all this but AOL. So AOL is sure to defy all logic of classical investors since the logic involves mundane things like valuation etc. It fails to take into consideration the potential for technologies that cause a paradigm shift. AOL is one such product.