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


To: RocketMan who wrote (3567)12/27/1998 12:46:00 PM
From: ahhaha  Read Replies (2) | Respond to of 29970
 
It is logical to assume AOL will go DSL, since they already made a mistake buying NSCP. That's what unearned success and the resulting arrogance does to you, blinds you so you make bad decisions. The end is near when the institutions have to buy you because they need another reason to under perform the SP500.

The difference in the phase of company evolution as represented in price is strongly indicated when ATHM and AOL are contrasted. It's a matter of early versus late. Breaking out of a base versus breaking into a base. AOL is breaking into a base, an upside down base, a general topping structure.

It is like the institutions dumping big time for no good reason but to get out before they expect the stock to trade below 0, and thereby creating a price bottom. Mindlessness creates bottoms. When the institutions buy big time for no good reason but to get in so that they can remain poorly correlated to the SP500, again mindlessness creates tops. This kind of top is different from the local top that you should buy. Nonetheless, this top in 5 years will also be seen to be only a correction in the long term. However, you will have wished you had sold just like it was ok to sell IBM in 1987.

My every trade analysis has not given a sell signal in AOL. It is just my guess that they don't have much upside potential. Maybe for the next 9 months they will churn forming a very evident head and shoulders top. It is probable the 4th count left shoulder was completed the other day. I'm not saying anything very profound in light of the last three months price action.

I'd like to say that MSFT wasn't anything like the government has portrayed them. The trial is a complete dishonorable sham perpetrated by the resurgence and glorification of populism and latent socialism in this country. MSFT in reaction to the absurdity of government's complicity in the conspiracy to destroy the spirit of the power of determined competition, has now started to become the very thing government claims. The motivation is pure, undiluted anger. Justified or not it has the power to destroy the company that wrote the book on high tech competition, saved every aspect of it, and even though they've driven us all crazy, also have enabled most of the technological revolution going on today. Not one of established old guard would have hatched the PC. They would have been content to administer computing from the ivory tower from mainframes, and government would have been there to bless their efforts. MSFT's anger can be seen in its increasingly bold moves to exclude. They are using the OS dominance in an ugly way where in the past, there was no direct intent to exclude. AAPL took this road with disastrous results. MSFT has a very strong trend and profit momentum that won't slow without rising short interest rates, so its stock though fully priced should hold up at least. It is this reaction to the unfairness that always comes out of belated attempts to legislate fairness that could cause MSFT to stumble. I don't mean from brainless government law suit; I mean just like AOL for different reasons, when you misdirect company resources for ulterior motives, ones not evident to management, wrong moves are taken. They accumulate and end up destroying you. This is the threat to MSFT. You may may see MSFT counter sue government for tyrannical abuse of power exceeding any authority offered under the Constitution. In a proper venue, they'd win, but you lose as a stockholder.