AOL spent 300+ million to earn Tnote rates

Discussion in 'Wall St. News' started by KINGOFSHORTS, Feb 7, 2011.

  1. 300 Million for a company that makes 10 million a year.

    I crunched the numbers, Return on investment is 3.4%

    Worse than the average S&P return.

    Worse than t-notes.

    BAD Investment.


    Arianna was pretty smart, she took the majority in cash lol!
     
  2. i didn't know aol had 300 million. I thought they were on par with elitetrader.com
     
  3. clacy

    clacy

    What is AOL? :D
     
  4. They are going to borrow at 9% to earn 3.3% LOL :D
     
  5. They are probably looking at the FUTURE CASH FLOWS
     
  6. basically they bought traffic. Whether they can leverage that into something is another story.
     
  7. are we back to counting eyeballs like in 1999?
     
  8. Yes we are
     
  9. CBOT needs to come out with Internet Bandwidth futures. So companies like AOL can hedge against risk

    ie: you can trade the Huffington Post April 20GB march contracts


    AOL eyeballs March call contracts BID/ASK


    67GB
    CALL 15'7 b -3'7 19'6 20'6 b 14'0 291 49'6
    No Limit 4:00:00 PM CST
    2/7/2011
    67GB
    PUT 12'0 a +0'6 11'2 13'7 b 9'0 267 41'2
    No Limit 4:00:00 PM CST
    2/7/2011
    67.5GB
    CALL 13'3 a -3'5 17'0 19'0 11'7 373 47'0
    No Limit 4:00:00 PM CST
    2/7/2011
    67.5GB
    PUT 14'4 b +1'0 13'4 16'2 11'0 144 43'4
    No Limit 4:00:00 PM CST
    2/7/2011
    68GB
    CALL 11'2 a -3'2 14'4 16'0 9'7 295 44'4
    No Limit 4:00:00 PM CST
    2/7/2011
    68GB
    PUT 17'2 a +1'2 16'0 19'6 b 12'0 421 46'0
    No Limit 4:00:00 PM CST
    2/7/2011
    68.5GB
    CALL 9'2 -3'1 12'3 10'7 8'2 18 42'3
    No Limit 4:00:00 PM CST
    2/7/2011
    68.5GB
    PUT 20'3 a +1'4 18'7 23'0 b 16'5 a 0 48'7
    No Limit 4:00:00 PM CST
    2/7/2011
    69GB
    CALL 7'5 b -2'7 10'4 10'7 6'6 70 40'4
    No Limit 4:00:00 PM CST
    2/7/2011
    69GB
    PUT 23'5 a +1'5 22'0 26'4 b 19'6 a 0 52'0
    No Limit 4:00:00 PM CST
    2/7/2011
     
  10. Maybe "ScaryAna" will take the money and run ......... all the way to a far off land. :p

    :D
     
    #10     Feb 7, 2011