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

To: Frost Byte who wrote (537)	10/21/1997 8:44:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 29970

Loss for the past 2 quarters is nearly $24 million. There are only 26,000 subscribers...weren't we supposed to see about a million by now? There is an accumulated deficit of over $60 million. Revenues are basically zero. There are over 118 million shares outstanding. The future capital expenditures required for any future large scale rollout will be enormous....and let's not forget about potential competitors. The cash sitting in the bank is being burned at a phenomenal rate...and that rate is increasing. Frankly, I would consider an early investment by Intel to be a negative. This reminds me of the euphoria surrounding Cybercash (another Intel subsidized loser). Check out its price performance since IPO. Exactly how much are you willing to pay for this "future growth"? So far, the company has failed miserably to deliver on its promises. What's a fair price for this company NOW? 1 billion? 3 billion? 100 billion? I don't think this stock is worth more than 5 a share. At 5, the risk to capital would still be enormous. Just exactly why would I pay as much for this risky startup as I would for a big chunk of an existing cable provider?

To: Frost Byte who wrote (537)	10/21/1997 8:52:00 PM
From: Bill Wexler	Read Replies (6) \| Respond to of 29970

<<It is the cable companies, not ATHM, that need to spend the $$$ to upgrade to 2-way HFC cable.>> LOL!! So I guess the management of the cable companies took some stupid pills? The cable companies are going to invest enormous amounts of cash on new infrastructure and @home does not bear any risk...it just sits back and collects the profits. Yeah...that's the ticket! Even if the cable companies get a good cut from each @home subscriber, I seriously doubt that they are jumping at the chance to spend even more money that they don't have to compete with the telco's. Have you examined the balance sheets of companies like TCI lately? In my area, it's a miracle if they even add an extra channel!