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Technology Stocks : AUTOHOME, Inc

ATHM 23.76

+1.2%

Nov 28 9:30 AM EST

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To: ahhaha who wrote (22815)	6/1/2000 3:58:00 PM
From: gpowell	Read Replies (1) of 29970

The B&S monopoly capitalism model of rising margins? Yes, but let's say rising surplus. There is a high correlation between R&D expenditure's and collapsed business profitability. Does this assertion hold if we replace cash flow for profitability? The Bell Labs guys spend a lot of money cooking up toys which are of no use. That is what R&D guys do, and is also why they need well rounded graduates of liberal arts colleges to manage them. The question is whether many companies doing that industry's R&D is better at technological advancement than is the same amount of money going through one lab. The answer is yes. How is LU doing these days? April 96' $8.67 April 00' $62.89 That is an annualized return of 155%. LU's stock is doing great.

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