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Technology Stocks : AUTOHOME, Inc

ATHM 23.38

+1.2%

Dec 4 3:59 PM EST

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To: Tom Tallant who wrote (16539)	10/31/1999 10:30:00 PM
From: ahhaha	Read Replies (2) of 29970

You sound like you're writing for a brokerage house. You don't put your dough down for milk toast reasons. Tax selling is irrelevant. Open access is businessman's risk. I believe it's irrelevant. In fact, it's a perfect smoke screen which helps to prevent the stock from going on an April binge which forces investors to sell. Advertising value of broadband? That's part of eyeball theory. @Home advertising has made no difference in my purchasing habits in comparison to dial-up. I have them both. That aspect of ATHM, pulling through the portal, is questionable now. In several years it will be different. Tell me how an advertiser can advertise? The user has too much control over the medium. You can't be in anyone's face. What makes sense is elective advertising. What's that? Let's say you are looking to buy a small boat. You log on and search for boat manufacturers. Each boat maker has a commercial team or firm which cooks up a good video presentation of their stuff. Reviewing the various videos narrows your options to a few for physical investigation. The only benefit to ATHM is the rent for enabling high speed distribution of videos. ATHM can't get in the video creation business. That's true content from the advertising angle and it is other firms which must provide this kind of service over ATHM's network system. Hindery's departure risks that the fumble bumbling management will throw more money down the rathole for incontentancy. The stable low risk institutional satisfying strategy was Hindery's distribution concept, not content escapades. You can't even define "content" because it's just a catch-all word which seems to mean something. On examination something disappears. Att's equity position is forcing Att to expend a great deal of money while the expectation of return on expenditure keeps moving outward on every content purchase. ATHM is a sunk cost with a variable return and in light of Blue Sky and Excite?! one wonders if Att has any control over macho motivated profligacy even if it is inadvertent evolution. I wish ATHM would stop making equity investments and start using the assets they already have. ATHM is going to take a stake in an e-commerce player? It sounds good but it's crap. What is an e-commerce player? A company which has paper thin margin, vanishing equity, and no market power. You'd need bad managers and poor oversight for ATHM to chase the e-commervce windmill. Malone and Armstrong can't afford any more escapades and that goes double for chasing the great expectations built into the prices of "internet properties". But the glib crap coup de grace is: "ATHM management is also poised by their management restructuring to release substatial shareholder value with a possible issuance of a "content - e-commerce" tracking stock with the Excite brand name. This would enable its parent companies to allow access via ATHM pipes to other ISP's and substantially diminish future court proceedings". How does creating a tracking stock increase value? The same way a split does? How does it change the legal environment? The phrase,"This would enable its parent companies" is incoherent. What are you talking about? An Excite tracking stock gets around Att's legal problems? What has any of that to do with management restructuring and what management restructuring do you mean? Bell?

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