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Technology Stocks : AUTOHOME, Inc
ATHM 23.48+1.2%Nov 21 9:30 AM EST
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To: E. Davies who wrote (10131)6/3/1999 9:55:00 PM
From: ahhaha  Read Replies (3) of 29970
 
You have been talking with clowns for so long that they are turning you into one. This is a hazard of the crowd and monotonic thinking. You look at price declining and you conclude that that means heavy market orders to sell. You haven't learned that price is declining because the public is booking below. That's where the orders are, so that's where price goes.

Who is booking above? Few. When the market rallies there isn't enough supply above in ATHM to encourage the market makers to do anything but supply by shorting. This creates an elastic state with respect to marginal demand while at the same time the public is creating an inelastic state with respect to marginal supply. Consequently, when the market state is negative ATHM falls and it will continue to do so until there is denouement. That depends upon what the stock is worth. On that front the brokerage house analyst's opinions aren't worth squat.

Now in the past the clowns here said I was crazy to think ATHM could go down to 100 or 60. How could it be crazy to conclude that the stock could not support a 1000 P/E based on the most bullish expectations? It only needed some excuse to admit this elementary truth.

The excuse was the FED might raise interest rates. Right now they are pumping as usual. No tightening bias. They can't do that. The DOW would gap down 2000 points and usher in rapidly the now unavoidable recession. The longer the FED delays the greater will be the punishment. The institutions know this and they aren't saying a word. They're selling into the public's booked orders below.
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