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

To: John May who wrote (991)	12/24/1997 12:34:00 PM
From: Paul Weiss	Respond to of 29970

John-- Investor sentiment or psychology (it would seem) is what moves a stock's price. What I'm thinking is that a fair number of folks are contemplating buying some ATHM when the lockup period ends. They're expecting the price to drop and are willing to wait for the anticipated bargain. With them, some shorts are planning on closing their positions at the (anticipated) lower level. Still with me on this line of reasoning? Well, the owners of the locked up shares are not the sort of investors to play short term gyrations. So what happens if/when ATHM stays strong post lock-up? Some of the shorts capitulate... bargain hunters realize that current prices are the bargain... price rises and more shorts pull out, etc. This is certainly optimistic, and we'll soon see how it plays out. Paul