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Technology Stocks : AUTOHOME, Inc
ATHM 24.02+1.3%1:54 PM EST

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To: Richard Habib who wrote (21113)4/20/2000 3:32:00 AM
From: E. Davies  Read Replies (1) of 29970
 
Book value means nothing. Its just the "value" of all the overpriced .coms ATHM purchased.

it will have lost a lot more money and will have about 3M subs and about $600M sales

The projected losses are trivial in the big picture- it's simply the principle of the matter that's destructive. They could not have picked a worse time to change the business model.

Who says a co that is doubling every year only deserves a P/S of 10?

BTW: a P/S of 10 would put YHOO at around $15 in a year too. CSCO (with a much smaller growth rate) would be a bit over $20.

Eric
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