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

To: Bill McCullen who wrote (11655)	4/19/1999 11:21:00 PM
From: Dennis J Baltz	Read Replies (1) \| Respond to of 41369

Bill I was not disingenuous in my comparison with GM. I was responding to the professors interview on CNBC where they showed a chart comparing AOL to GM. I was upset with the CNBC interview and their comparison which I felt was ignorant. As for the PEG, a value of less than 1 does represent an undervalued company. But I feel it is a signal only because one needs to look a little closer at the stock to be sure there isn't some other problem depressing the stock price. As for AOL, their revenue went from 104m in 1994 to 1,685m in 1997. That is more than 30%, maybe you are using a shorter time frame. Profit growth calculation is a little tricky since it was negative until late 1997. This data doesn't take into consideration the recent Netscape purchase either. I know they are buying companies which increases sales but they are buying them with AOL stock. So it is reflected in the EPS which is reflected in the PE which is reflected in the PEG also. Just my opinion on AOL but I was never disingenuous in the comparison the professor showed on CNBC.