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Technology Stocks : AUTOHOME, Inc
ATHM 23.78-1.2%2:00 PM EST

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To: Educator who wrote (19102)1/20/2000 11:42:00 AM
From: gpowell  Read Replies (1) of 29970
 
There needs to be an expectation of an earnings surprise. The revenue growth of ATHM is fairly predictable. Do you see much upside potential there? Maybe a little.

I wouldn't expect any downward surprises. But, I'm having a problem with the goodwill charges, nearly $500 million worth. It's not like these charges are reducing earnings by 5 or 10 cents per share - more like $1.35 per share. This pushes out real positive earnings until 2001 (if they don't incur any more charges).
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