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

To: Diana who wrote (14398)	5/3/1999 12:10:00 PM
From: Andreas	Read Replies (2) \| Respond to of 41369

Dilution accompanied by price drop. If aol should participate in the media one deal look for a short term drop in aol's price of anywhere from 20% to 40%. The amount of stock to be issued will result in substantial dilution with the usual rise in pe unless the stock drops. I doubt the Street will tolerate a higher still pe and so instead the stock will drop. Look what happened to T's stock. And as far as i'm concerned i'm not willing to hang around the one to two years it will take before the dilution damage is repaired by the requisite earnings from media one. If you don't believe me give a call to your brokers. I am personally aware of one brokerage that is already recommending to their large clients to sell if aol is successful with media one.