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

To: KW Wingman who wrote (21663)	5/2/2000 1:59:00 PM
From: MIKE REDDERT	Read Replies (2) \| Respond to of 29970

Your negative views of management is not based on any facts that I am aware of....These people may have paper losses in ATHM stock and they want to "blame it" on someone other than themselves I blame no person or company for my performance... my only objective is to recognize the position in which I put myself when I buy ATHM. That position is as follows... By historic performance, ATHM management states that every dollar invested in their abilities will guarantee a return of 10 cents. Whatever asset they might acquire at retail prices, they guarantee that they will give the shareholder the auction value of that asset at some point in the future Right now the market cap of ATHM is under 7 billion... they paid 7 billion for Excite alone. If we assume that management exercised good judgement, then we must value the rest of the assets at zero. But the fact is, there is no way one can assign a positive value to the Jermo/ Bell combo... when Bluemountain and the other hodge-podge of assets are included, and you subtract all of their fumblings from their market cap, you end up with red ink period. Some like to think of @Home as a separate entity, controlled by the efficiencies of the various MSO's, but this is a delusion as far as the share price is concerned... as long as Jermo/Bell continue to shovel assets out the back door as fast as T and the MSO's can generate them, ATHM is worth the auction value of their assets, and the market has priced it at that level. Excluding @Home and the support of T and the MSO's, Jermo/Bell are essentially bankrupt... or they would be if left to their own judgement. I suspect that a "garage sale" of the various assets would yield a per shr price that would validate a purchase of the common stock at under 20 /shr. Remember that when a company is "down", human nature dictates that they will receive the lowest possible price for their assets. One might argue that a "stand alone" @Home is worth far more than 20 /shr, and they would be correct... but when you bundle it with the foolish actions of Jermo/Bell, you subtract as much as you gain... and T has already bought @Home for $48, so it's not for sale. I challenge you to provide one example of an acquisition, where this management has not cut its value at least by half of the purchase price. You can't do it. So when you say, "Your negative views of management is not based on any facts .", I say you need to get your head out of the sand... with all due respect. Mike