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

To: G_Barr who wrote (23656)	7/19/2000 1:48:02 PM
From: ahhaha	Read Replies (1) \| Respond to of 29970

I have repeatedly said, "release from such a condition would be a term of sale". You say you can't see how the company would do this. They would do this if a prospective buyer demanded it and ATHM needed to do the deal in order to be able to do another deal. In fact, that is precisely what a prospect would use as an ace kicker in the hole. So there is a reason for sale to include noncompete provision and it is that the provision is something of considerable value. Management would only be looking at what could be bought with results of sale. They would see the new opportunity as enhancing shareholder value. If the same opportunity arose and ATHM hadn't squandered funds on Chello, but had only gradually accumulated other properties in Europe, they might be able to keep the old and get the new. Getting in deep without control is another profitability constraint. How far forward does this push breakeven? At some point there is an actuarial truth that can't be denied. If that takes hold, the stock will close its IPO gap.