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Technology Stocks : AUTOHOME, Inc

ATHM 22.92

+0.8%

Jan 21 3:59 PM EST

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To: E. Davies who wrote (10131)	6/3/1999 10:26:00 PM
From: E. Davies	Read Replies (1) of 29970

Just a FYI that occured to me. Everyone noticed how at the conclusion of the ATHM/XCIT merger the price took a sudden drop. We wondered if the XCIT shareholders were selling or something. Heres a theory: The arbs had used up much of the ATHM short borrowing and the end of the merger set the borrows free again. I could not short ATHM against my XCIT in any of three different brokers. More shorts= more sellers. Make sense? Eric

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