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Technology Stocks : Now we have a better pipe: ATHM's XCITing future

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To: White Shoes who wrote ()1/20/1999 2:25:00 AM
From: SkyDart   of 3
 
ATHM/EXCITE: The next Dell or MSFT?

With the parent of AT&T tending to this fledgling upstart company, the chance of failure is remote and the chance for market dominance is substantial.

Based on the press release, combined financials for the merged company are projected [year 2002] at:

REVENUE: 2 Billion

PROFIT: 660 million

MARGIN +33%

Currently pre-merger XCIT had gross revenues [44 million] second in the Search Engines only to YHOO [55 million prev qtr].

More importantly, growth into high speed cable for internet access and full service Portal will be rapid and the above numbers may be low. Internet access via broadband with voice and TV is the future IMO.

"Step aside AOL and YHOO and you crude ISP's."

SHORT TERM: We could see XCIT/ATHM surpass YHOO in valuation. That would mean about a 6 to 8 fold increase in the price of the stock: ie 110 to 660 or 880.

LONG TERM: We could see the stock appreciate at a Dell or MSFT rate over the next decade [Last decade Dell was up 55,000 %]

I am definitely holding a few hundred shares.

SkyDart
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