To: im a survivor who wrote (19472 ) 6/1/1999 5:38:00 PM From: HECTOR RUBERT Read Replies (4) | Respond to of 41369
KG4..and others....my take on AOL......... Let me start by saying I hold 2,450 shares of AOL at $67. I like many holders wished I would have sold at $170 only to buy at these levels again. However, timing the market is very difficult so I decided to buy cheap and just hold. I'm on Margin just like many of you. However, of all the Internet Stocks to hold on Margin who better than AOL. AOL stock has the most support of the internet group. This company will continue to grow and find new income streams currently not on the analysts books. As I understand. Analysts only estimate earnings based on the existing business model. Why I'm holding AOL is because their business model is in flux. Their recent partnerships and acquisitions will provide new revenues currently not available. The PE is meaningless....since the business is changing as we speak. The traditional companies like GM can be measured using PE since their model is static. However, AOL's model is under evolution. Its started as an ISP provider however, its mission is far beyond that. Therefore measuring revenues or earnings as an ISP will prove wrong to those analysts. There is a lot of uncertainty in the markets today. However, the internet without a doubt will lead industries around the world into the new "E" revolution. There is a lot of money sitting on the sidelines waiting for confirmation as to the markets direction. Don't be fooled by those value analysts saying how AOL, MSFT, and CSCO are all overvalued. Look at the performance of their funds. Every Value Analysts FUND has trailed the S&P consistently. America Online will not be the same company you know of today. It will be an internet conglomerate of services to both consumers and businesses worldwide. To give you all a little perspective. If AOL goes down below $100, can anyone tell me what would happen to all high PE stocks like EBAY,LCOS,YHOO,PCLN and AMZN? Their stocks will go on a free fall....margin calls will be forced...online broker sites will melt-down.....investors will loose billions...many will file bankruptcy......consumer spending will slow to a crawl...businesses will incur millions of losses due to lack of sales...earnings will drop.....layoffs will follow......unemployment will rise to double digits...and this precious economy will be in the toilet...... This is a food chain folks. You can't hurt one without affecting the rest of the chain. AOL is the leader...and just like whales. If the leader is beached....everyone else will follow. For me. I have vision. An the analysts are blind. But as fate will have it. I will still be here when they realize what an opportunity it would have been had they just bought cheap and held. These are my thoughts. Long AOL. Hector