AOL Shares: How Big a Bargain?

They're cheap all right, but analysts have plenty of concerns. Plus, a slow broadband rollout and byzantine accounting won't help

One of the ironies of investing is that as a stock falls in price, it usually looks more attractive. Take media giant AOL Time Warner's (AOL ) shares. On Jan. 30, the company announced that it lost $1.8 billion in the fourth quarter, on revenues of $10.6 billion, and it projected that sales and profits for the first quarter would be flat with last year. Its stock promptly fell $2 a share, to a 52-week low of $24, before rebounding to close at $26.55. That's down from better than $58 last May.

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