Don't own any AOL. Just browsing, curious about the recent AOL run-up and what the thinking among AOL investors was. My first thought would be to side with the shorts except for one thing: I don't think AOL has any Asia exposure. Given that Asia's troubles seem to be brewing again, that's a real positve. Some buyers might go to AOL to lessen their Asian exposure, especially if 1Q98 earnings start coming in low - then AOl's low EPS won't look so bad in comparison. Just a humble opinion by a passer-through.
Case sited the reason for the $2 jack-up as the expense for the internet expansion here in US to meet the growing number of members in the domestic market. Then he enters ASIA???? and particularly at this time?????
Is he out of his mind??????? Guess who's gonna pay for the expansion there? Don't expect AOL to collect $21.95/mo in China either. FYI, an average college prof in China makes about $40 US./month.