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

To: Bill Wexler who wrote (538)	10/22/1997 1:27:00 AM
From: sepku	Respond to of 29970

>>>Just exactly why would I pay as much for this risky startup as I would for a big chunk of an existing cable provider?<<< One reason you may want to consider is the fact that all the cable companies are wallowing in enormous debt that is mounting in the several billions of dollars...each. Not to mention the mounting competition in the form of direct satellite broadcasting that isn't nearly encumbered by regulations. ATHM has virtually no competition with anywhere near its technological lead, nor its powerful alliances -- direct and indirect -- with entities such as INTC, MSFT, CSCO and TCI. With ATHM you are paying a huge premium in exchange for huge potential...when and if that potential lives up to its dreams is yet to be determined. Your concerns regarding the stock's value are justifiable, and I agree with many of them. In relation to revenue to market cap, I must ask myself just how large a premium is deserved. By the way, I have no position in the stock as of yet. I have been following it for a couple months now to check out its prospects. I will most likely be willing to day and position trade it for the time being. When it becomes clear the cable companies are intent on beefing up their infrastructure and the subscriber base shows exponential growth, I will consider a more long-term perspective. For now the value question remains too much a hindrance for me to warrant a risk in a long term hold -- a possible retreat to more conservative valuation in the near future could occur at any time. But recent developments and stronger ties to INTC is encouraging. Style Pts.