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Technology Stocks : AUTOHOME, Inc
ATHM 23.41+1.5%3:59 PM EST

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To: Marc T. Archer who wrote (2889)10/8/1998 11:58:00 AM
From: UFGator93  Read Replies (2) of 29970
 
Marc.

Take this for what it's worth because I am short ATHM.

Yes, I think it could go much lower. While ATHM may be a good company and might have a bright future, the present is that it is way over-valued. It will have to continue to increase revenues by leaps and bounds for many years just to "fall into" its current value. The revenue for the last 12 months was around 20 million. The market cap is somewhere between 4 and 5 billion. Very, very few companies can trade with that kind of ratio of market cap to revenue without seeing their stock take quite a pounding. I realize that ATHM is growing revenue and this will decrease the ratio. However, that only means that it will be a good buy at its current price several years from now.

Again, this is just my opinion and I am short.

Damon
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