AUTOHOME, Inc Message Board

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Technology Stocks : AUTOHOME, Inc

ATHM 22.04

-4.0%

Jan 30 9:30 AM EST

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To: Jay Lowe who wrote (16988)	11/13/1999 2:43:00 PM
From: ld5030	Read Replies (1) of 29970

<<T is trying to create a dynamic tension here by playing a sleight-of-identity. This ambiguity is a useful bargaining tool in their relationships with franchising and regulatory agencies. Standard whipping boy move.>> I understand whipping the boy (with a wink) in front of the regulators and municipalities. My point was that it is illogical to whip a boy you are about to sell. It diminishes the value of the product, like publicly saying your Quarterback is a chump just before you trade him. For T to pull the rug out from under ATHM they would have to forego much of the value they own in the company. Their 58% stake would be much less after the stock drops to the teens. I believe it was the ML fellow who said that ATHM was worth 1/2 of its value without exclusive access deals. Whatever other deal T supposedly has would have to be pretty sweet. On the other hand, if they sell their stake and then pull the rug....ouch. ATHM would still be OK long term, but the stock would be the new whipping boy. There is persistent long term risk from the whims of the MSOs with this stock. We knew it when we bought it, and it is ok. But articles like this one are disturbing in their implications.

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