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

To: gpowell who wrote (18207)	12/25/1999 3:01:00 AM
From: ahhaha	Read Replies (2) \| Respond to of 29970

Att owned virtually all phone circuits for decades and they could barely pay the dividend. IBM provided, supported 90% of the world's mainframes and the stock went from 400 in '87 to 30 in '94. MSFT glorified competition by using it against other companies to its own detriment by giving the world everything the world said was wanted. What proposal was needed to do better than them? They had to get rid of antiquated attitudes about control, dominance of market share, turf protection, competition, corporate isolation, pyramidal management structure. ATHM has taken a tack which is similar to these by attempting to retain sole provider status on their superior network. They and Att think this is the only way to get a yield out of the company. Otherwise, they think and Wall Street believes, the company is a useless pile of junk, the execs are clowns, and the employees are hippies. It's absolutely true as the execs there suspect, but it is also true of MSFT, ORCL, SUNW, AOL, or any other company. So without a challenge all safe and secure in their 10x market the company stagnates just like Att, IBM, etc. On the other hand they can go after the 100x market that exists outside of current expectations that greed would preclude reaching. Greed would encourage others to go it alone and build their own competing ATHMs. Concede and conquer. It's contrary to the wisdom of 6,000 years of history, but we have a different world that requires a different approach. The funny thing is that in concession nothing is conceded but your own conceit. My proposal is the first step in pushing that 10x to 15x by compromising on what appears to be the better return for the wider return and in this process the added component of return that comes from another, AOL in this case, may have a higher effective yield that could also be engaged in the non-AOL subs market. Further, AOL has developed some small skill with pleasing a large segment of the populace who find what they provide is attractive. There's added value there, not only in the captured market but also in the skill that they have learned which can be applied in new ways to win those who don't care for AOL's current presentation. To believe that ATHM can just pull away all of AOL's customers is pure myth. AOL can use DSL to slow the migration and then engage their own broadband cable in deals with all manner of future providers on cable networks outside of MSOs. You only need to go to BLS, Hartford, Abilene, Glasgow, RR, HSAC, to see a few from the rapidly rising quantity of alternatives. So please tell me what is so safe and secure and why is Wall street so wrong about the stock price, and why a good crawl wouldn't be good for the soul.