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

To: Dennis J Baltz who wrote (11661)	4/20/1999 8:19:00 AM
From: Bill McCullen	Respond to of 41369

Dennis, I thought you were referring to the reference to GM in the article. I did not see the interview on CNBC. My apologies. However, in my calculation I used 50% growth per year for AOL (not 30%) going forward. It is important to understand the historical growth rate but the expected future EPS growth is more important and according to Yahoo analysts' expectation for AOL are 50% EPS growth per year. Lets say they are way off and AOL grows 100%. The PEG for AOL is still over 4.0. Doesn't this seem high to you? Compare for yourself to MSFT, CSCO, INTC and other great tech companies. Yes AOL has Netscape but it did not come for free so there are more earnings but also more shares so unless Netscape is more profitable than AOL it won't impact EPS. Bill