SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?


To: Boplicity who wrote (4407)1/18/1999 9:44:00 PM
From: Marc T. Archer  Read Replies (1) | Respond to of 29970
 
<What will it do to the stock? >

At THAT price I'm hoping it'll send it lower but knowing the internut stocks it'll probably send it soaring.

Where the heck does ATHM come up with that kind of money?

MTA



To: Boplicity who wrote (4407)1/18/1999 9:50:00 PM
From: Jenne  Respond to of 29970
 
I dont know... it depends on what they actually paid.. but I think it may give it a surge.. Excit will pop..



To: Boplicity who wrote (4407)1/18/1999 9:58:00 PM
From: ftth  Read Replies (1) | Respond to of 29970
 
I can't find any official reference to check the facts. But, assume it's real; if they can use pooling, the assets, liabilities, and equity are shown at book value, so no goodwill is created and future earnings aren't reduced by the amortized goodwill. One condition required for use of pooling-of-interest is they must issue voting common shares in exchange for at least 90% of the voting common shares of XCIT in a single transaction.

The purchase method has dilutive earnings implications (amortized goodwill). The big question as always is how much this bundling of increasing net losses and millions in LT debt increases the risk of financial distress to shareholders. The acquired assets are largely intangible.

you make the call. I'd say it looks down either way, but internuts are fanatical folks, so who knows.

dh