Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Archie Meeties who wrote (21274)	4/21/2000 10:08:00 AM
From: Ahda	Respond to of 29970

Yes the market will speak perhaps the public will start reading the Sec again and think of what value is. How complicated the legal structure of an organization can get. Fund managers who in this new economy need sec attorneys on their payroll to decipher filings. People as myself who make a noble attempt at it and then realize there is a labor cost involved here and is there going to be a return? Transparent is impossible, tracing down the investments that have been made by the corporation hours of work. Their paper becoming my paper work . I think it is more intelligent to invest in a venture fund who doesn't specialize in dot com the risk is probably no greater. And what does this mean nothing, other than we the public are patzers or the law keepers are clowns?

To: Archie Meeties who wrote (21274)	4/21/2000 11:29:00 AM
From: gpowell	Read Replies (1) \| Respond to of 29970

Don't tell me about the market, I've been negative on the market for months, ever since the tech stocks I analyzed were at least 100% overvalued, except for one, ATHM. ATHM is one stock in the market. If you want to make your case here, you better come up with some specifics. I've valued ATHM with several different models, all of which are based on earnings or DCF, not simply growth rate or revenue, these valuations averaged about $35. The valuations are the value placed upon the future of domestic data services, only. ATHM has several other revenue generating technologies, some of which are mentioned in the original post, which you responded to. I've valued these at zero dollars, since we have no way of estimating the revenue or profitability of these. My post was to point out that market sentiment has turned on such forecasting and that valuations can no longer be based on it. I disagree somewhat. Several of the tech stocks I follow experienced insane run ups, well ahead of guidance given by the individual companies. When these stocks corrected, they returned to valuations that can be supported by near term projections. this is a good sign for the market, the irrational exuberance is being squeezed out of the market, yet irrational pessimism has not taken hold. ATHM's valuations are based on future projections for subscriber growth; they have yet to miss a target. ATHM's revenue is tied directly to the number of subscribers and the revenue derived per subscriber has been fairly constant. I want to make this clear: ATHM could be profitable if they chose to be. The domestic infrastructure investments are at the stage of payoff , each new subscriber incrementally adds to the bottom line. ATHM's management is choosing to forgo earnings in favor of international growth. As investors, we need to evaluate whether this is a change we want to invest in. Your posts have limited applicability to this stock, and further your commentary on valuations are too vague to be applied elsewhere. I value your contribution near zero.