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

To: JayPC who wrote (19502)	2/8/2000 10:21:00 PM
From: gpowell	Respond to of 29970

ATHM is dead money until something material happens; no reason to take a new position in ATHM. The psychological hang over of the speculative run up in early 99' is killing this stock more than anything else. The perception of failure is a self-fulfilling prophecy and will result, most likely, in a continuing drop in ATHM's share price - until a shift in perception occurs. If we eliminate the bubble, then ATHM's stock price is climbing and correlated to increases in the subscriber base. Eliminate the bubble and the perception of failure changes, although the underlying "truth" is the same. The long fall from the highs wasn't a break in the long term trend by itself. Recent price action suggests a break down has occurred between subscriber growth and share price. Consider the ATHM conference call, Bell clearly indicated that subscriber growth has reached an inflection point and is accelerating. Yet, the stock price is languishing. Under these conditions why buy more ATHM stock? Still, I am not overly concerned. I think its just a matter of time until improving fundamentals assert themselves. I think the picture will improve every quarter as long as ATHM remains at least marginally independent.