INTERNET Investors await plan for AOL's recovery

A probe of the online service's accounting is likely to be among the topics addressed.
NEW YORK (AP) -- After months of anxiety and speculation, AOL Time Warner investors hoped to get some assurance today that better times are ahead for the company's troubled online division.
America Online executives were scheduled to brief Wall Street on their plans, the first major strategic update since news this summer that the Justice Department and Securities and Exchange Commission were investigating the division's accounting practices. That topic is likely to come up today, along with questions about the profitability and viability of America Online's business model.
Wall Street also was to hear for the first time from Jon Miller, the company's new chief executive. Miller, who was hired in August after a management shake-up, has had some contact with the investment community but so far offered few specifics.
"This is the first opportunity for the new management at AOL to talk about their plans and that's going to be important," said Phil Leigh, digital media analyst at Raymond James & amp; Associates. "America Online went from being the crown jewel of this company to the albatross. And Miller's mission is to turn that around."
Key points
Analysts expected the update to focus on two messages: first, that America Online is only one part of AOL Time Warner, which continues to do well in its movie, music and other divisions; and second, that America Online is focusing on profitability rather than costly growth strategies of questionable value -- such as bombarding mailboxes with computer disks containing its products.
Although the accounting issue is likely to be discussed, many on Wall Street think that problem is reflected in AOL Time Warner's stock price.
The stock is currently trading at more than $16 a share after starting the year above $30 and then dipping below $10. They say the company's bigger priority will likely be convincing investors that America Online is capable of making money in an environment where advertising and new subscribers are no longer reliable profit drivers.