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

To: TCBinAugusta who wrote (4414)	1/18/1999 11:02:00 PM
From: E. Davies	Read Replies (4) \| Respond to of 29970

If this XCIT news is true, it certainly would shake the .com landscape and make ATHM a central figure in the internet world! ATHM with the #2 portal would finalize its place as an internet stock and a a future challenger to AOL in the mind of the public since it clarifies the fact that ATHM is more than just a cable ISP, even though they have been much more than that all along. This is one situation where ATHM's massive market cap would come in handy. Despite XCIT's absurd valuation (IMO), ATHM is 3-4 times the size of XCIT and has 7x the float so ATHM is large enough to swallow XCIT without changing its fundamental nature. XCIT is making a profit so it would only help the earnings picture. But the deal better be all stock or I would be severely disappointed. My concern for ATHM has always been that I didn't know if they had the expertise to really compete in the content aggregation and creation domain against the likes of AOL & YHOO. They will have added to their arsenal the best alternative available if they buy XCIT. At least ATHM thinks bold and thinks big, that alone continues to justify my faith. Despite the classic arbitrage that usually drops an aquiring company I cant imagine how in the longer term this is not a very good thing for ATHM & the stock. I am more determined than ever to buy on any drop in the stock. Eric