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

To: KW Wingman who wrote (26114)	10/22/2000 2:51:00 AM
From: MIKE REDDERT	Respond to of 29970

I'm sure you noted that on the date of that post, ATHM was over 100% higher than its current weekly low. In my experience, the problem with averaging down is that the vast majority of investors have a point of capitulation, even when they say otherwise... that dooms most to losing money (big money)if they average down because the street will most certainly test their mettle to the extreme. Keep in mind also that when I said that, I had seen any number of posts on various boards where people were buying thousands of shares of ATHM... and it wasn't a far reach to suspect that margin played a big part in those purchases. If you think about it, that advise is the most honest and least damaging that I could give on a public BB. As to the present, I agree... ATHM will probably provide a reasonable ROI in time... but not on margin, and not in increasingly disproportional amounts in a portfolio. IMO, individual securities should never be purchased without a protective stop. If you advocate averaging down on a public BB, and to people of which you know nothing, you will eventually open the door to disaster for most. Can you sleep with that ? At any rate, the reason I came over here tonite was to get a handle on net asset value in light of the Shaw news. I know that it lies somewhere north of here, but I'm not sure exactly where, and as Eric pointed out, the street doesn't appear too sure themselves. Where do see it, and what is your reasoning ? Mike