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

To: E. Davies who wrote (13706)	8/7/1999 2:21:00 AM
From: ahhaha	Read Replies (1) \| Respond to of 29970

TCI is rolling out orange cable in huge spools so it looks like passed is going up fast. The problem in the SF Bay Area is that it needed to be done last fall. For 9 months they diddled and many in the Bay Area have lost intense interest.Meanwhile copper 33.6 has gotten much better so the dire need for an alternative has lessened. The Internet shakeout is upon us also in the public's having become somewhat jaded with it. However, if the Net is down the public is livid. It reminds me of the necessity of electricity which you forget until the lights go out. That tells you that Net stocks will do well, extraordinarily well, during a recession. In the SF Bay Area the demand rate is equal to the ability to supply given the delivery delay rate(about 4 weeks). It is for this reason that ATHM and the consortium have to sit on the price. They can't encourage demand because the delivery delay would alienate too many. Better to let things evolve naturally. They will have to lower price eventually and in certain areas like Fremont that should be done immediately, but if you do it there, then you have to do it elsewhere. So the first order concession would be items like free installation and other freebies which the company is currently providing. In six months maybe for Christmas they'll drop price to $35. The big drop in price will occur when 60% passed is reached. Price isn't an issue because the Bay Area is relatively wealthy. Hard to find a house for less than 300Gs. The areas which are getting pulled seem to have no connection. I suspect it is due to the evolution of installation which was diverted when TCI went for digital tv. Those crews are freed up now and so given the movement in Contra Costa County the crews are going first to wherever the pull is easiest and covers the most homes and there is no question that higher income cities are going first. The firms who do the installs are no more than 2 years old. They favor the panel truck. You can tell the crews have all the sophistication of an apprentice electrician. When I talk to them they don't know a thing about what they're doing. They are continuing to move, maybe like snails, but it is getting done.