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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Jing Qian who wrote (13252)	8/2/1999 4:43:00 PM
From: E. Davies	Respond to of 29970

I do feel ATHM should be more pro-active to jump start the sub growth. 160K a quarter doesn't seem strong enough to counter AOL. ATHM won't "counter AOL" (be a similar size) for 5 years, even under the most optimistic of projections. However even getting 1/2 or 1/4 the size of AOL will do some pretty impressive things to the stock price. The bottom line is that only ATHM and the MSO knows how many subscribers they can handle in each area. Since they want to keep the price similar throughout the country the areas that can handle more new subscribers than they are getting will continue to get tons of promotional deals and advertisements. Only when they are able to handle more new subscribers on a widespread basis will they lower the price. What is the point of tripling the demand if your hardware cant handle it? My hope is that BB apps start sinking into the public psychology before @home has to drop the price too far. Say maybe only down to ~$30. Dont forget that once the price is dropped it very likely cannot be raised again for many years. People dont tolerate that sort of thing. Eric