AOL spent 300+ million to earn Tnote rates

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!

 

i didn't know aol had 300 million. I thought they were on par with elitetrader.com

 

What is AOL?

 

They are going to borrow at 9% to earn 3.3% LOL

 

They are probably looking at the FUTURE CASH FLOWS

 

basically they bought traffic. Whether they can leverage that into something is another story.

 

are we back to counting eyeballs like in 1999?

 

Yes we are

 

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

 

Maybe "ScaryAna" will take the money and run ......... all the way to a far off land.