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Technology Stocks : AUTOHOME, Inc

ATHM 23.75

+0.1%

3:59 PM EST

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To: Gregory S. Wagner who wrote (8149)	4/18/1999 7:54:00 PM
From: GraceZ	Read Replies (3) of 29970

*OT* I'm curious though (sorry for all the questions), but when did you make the decision to unload INTC. What was the signal to move on? I knew you would ask this. Its a very good question. The decision to sell and move on to a different investment has a lot to do with timing and your individual goals as an investor. I was a long term investor in Intel because I believed in the long term growth prospects for the company and the sector. I got in Intel in the late eighties. The story behind Intel was almost too good to be true. Combine the growth of the computer industry we saw coming and their dominance of the industry (almost no competitors anywhere near them) and you had no doubt that they were going to make a lot of money. They did. They were touted as the company that would become the most profitable in the world. I only sold my Intel stock once, when it hit a price target that was close to the 52 week high for that year. Bought it back after it bottomed and then rode it through another run up and retrace last summer. I told myself on the darkest days last summer if it saw 90 again I'd sell, which I did, only to see it hit 140 (pre-split) a short time later. So now we know that my timing sucks. But here is the real reason I moved on. One of my spare time activities is to build spare parts computers for friends and family members. I throw off enough spare parts to build two or three computers a year. I swap out hard drives and modems for friends and ask for the old parts as payment. The world is full of people that still need computers. I hate the idea of them walking into a CompUSA, paying a thousand plus and getting a top of the line computer only to see it become obsolete before they even learn to use it. So I frequently get on the web and buy refurbs and barebones, then soup them up. At some point I realized that I was specing out Cyrix and K5 processors for these people and I'm a shareholder for Intel. Something is not right with this picture. I don't think for a minute that AMD has a chance of overtaking Intel (rabid AMD fans please accept my apoligy in advance) but they do have a chance at wrecking that wonderful profit margin that Intel has/had. Even if they had to commit suicide to do it....which it appears they are ready to do. Intel was priced as a growth company, it had turned into a cyclical. Someone could make a ton of money playing that angle with Intel. Someone with bad timing does not do well with cyclicals. So given my investment objective (find growth companies in sectors that are guarrenteed to grow, hold or accumulate through the retracements), my reasons for selling were right. At some point everyone that wants a broadband connection will have it. That is a few years hence.<VBG> I expect to stay in ATHM or another broadband play until that time. It a sure thing that this sector is going to grow at a fantastic rate in the next five years. Right now ATHM is uniquely positioned to benefit from the broadband explosion.

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