Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra. The merged AOL and Time Warner makes for a compelling business story. A lot of people in my office started bailing out of Time Warner this week. That's enough to make most shareholders dizzy. So triple digits seemed like a good reason to take the money and run.
Bears make money.
But hogs get slaughtered. Those are substantial gains over already high prices, and investors ought to be asking what will propel the stocks further. Unlike most Internet stocks, AOL does have a bit of net income, but the shares are really trading on the company's potential. Time Warner would earn if you add back in TW's amortization and part of its depreciation charge. That still makes Time Warner stock look expensive.