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No. of Recommendations: 2
That is a compelling point anastasis. I just think that in the aggregate, there is an extraordinary amount of selling going on there. Every day, including today, we are getting notifications of significant insider selling and NO insider buying. I realize that these people hold a large amount of stock and that even though the 500,000 shares sold by case and the hundreds upon thousands of shares sold by others are small percentages of their holdings, the overall amount of selling within the company is not a positive sign. There should be some leadership there. Someone should be stepping up to the plate and buying in the open market. There must be someone, one would think, inside that company, who has the convinction to buy the stock.

Because the visions of grandeur can propell the stock to such unbelievable new heights in the short term regardless of the direction of shareholder equity and it's rate of increase or decrease, I can't predict the top in the stock; however, I believe that the hight p/e and p/b ratios are not a sacred part of Americas culture and will not be held up by mere tradition, I will venture to predict, contrary to popular religion, that AOL/TW will probably be trading at a more "media like" earnings and asset multiple. I also think AOL will find itself over extended, indebted and in the red within a couple of quarters as growth slows, profit margins get squeezed and debt increases.

I don't revise my projection because a herd is willing to follow eachother in bidding up a stock to lofty heights. That doesn't last in the long term. The only SUPPORT this stock has is psychological. True support, based on assets and earnings will be found in the $20.00 level. I think this stock price will collapse like a Ponzi-scheme. I can take a little ridicule now. The beauty of this is that this is archived. I will be vindicated.
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