Now that AOL has acquired Netscape, the Netscape shareholders will become AOL shareholders (.45 shares for every 1 share of Netscape). Though everyone knows that "AOL Sucks" as an Internet Service Provider (ISP), there are some interesting things to note. For instance, AOL owns CompuServe and ICQ (the chat room software). America Online also made a smart move early on -- they became the kids choice. Now every kid in America wants to belong... "has" to belong.
Hopefully, AOL will leave Netscape alone to continue doing what they do well. In fact, this is what has been suggested. They plan to let the browser and porthole live.
Another interesting reason to purchase the stock today is that the price of Netscape was down, while the price of AOL moved higher. In effect, you could buy AOL cheaper by buying Netscape.
Information on the "sell to open call" option.
|Buy||100 Shares @ 39 7/8||NSCP||NETSCAPE COMMUNICATIONS|
|Net proceeds from the sale.||$4,972.98|
|Less acquisition costs = net profit before taxes (Capital Gains)||$970.53|
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