Likewise, AOL will have increasing competition from local providers who offer cheaper rates and guaranteed dial tones. Everything AOL had that was unique is now available free over Internet sites such as this. Your analogy to MU is correct. It traded wildly but ended the year virtually unchanged, or slightly down. Will AOL be at $90 a share this time next year? The analysts you refer to are all momentum players. Watch 'em evaporate.
You got me. I don't know who in their right mind would buy AOL. But the analysts keep pushing it. Reminds me of MU last year. Everybody knew they were going to face stiff competition from Korea, yet the analysts kept touting it. Earnings were going to materialize, yet they never did.
Thanks again alectric. Who in their right mind is buying AOL anyway? The daily percentage gains are miniscule on up days. The smart traders will soon figure this out and move to stocks that have greater upside potential. Hey, I just bought a Chinese construction company with earnings of $2.96, a PE of 1, and an 11% dividend...for $3 a share. I'd say all the bad news about China is reflected in the stock price! The symbol is OLSAY, by the way.
I think I missed something here. I'm pretty sure acquisition of another company is not one of those fundamental changes in company form that requires shareholder approval. Selling the company is. A stock split would double the number of shares outstanding; what other doubling of shares are we talking about? A secondary offering? Again, I think I missed something.