By the way, what the general market does has great impact on ATHM.
Yes, and what the general market has been doing with tech stocks lately is to day trade and try to scalp a point or two, thus the volatility, the sucker rallies in the morning, the deterioration of the a/d line, etc. I just saw some figures from this month's smart money magazine that highlights how the average tech "investor" can not see past their nose. The annual turnover in Coke shares is 40%, which means that the average share is held for 2.5 years. Here are some other turnover figures:
Pepsi 55%
WalMart and Disney 65%
GM 78%
Microsoft 200%
Cisco and Intel 235%
AOL 1100%
Amazon 5600%
EBay 13,600%
That means that the average EBay share is held for 2.5 days! I don't know where ATHM fits in there, but I would guess it would be between AOL and Amazon, or about a one-month average hold. Now, keep in mind that companies like AOL and ATHM have large institutional ownership, that holds longer and drives the average higher, so that means that the typical transaction is probably from a day trader buying or selling in the morning and getting out before market close. |
