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

To: Richie who wrote (6388)	3/20/1999 12:38:00 PM
From: howto	Read Replies (3) \| Respond to of 29970

I would like to buy athm, is it too risky to buy xcit? What are the chances of the deal falling apart? Thanks for your thoughts.

To: Richie who wrote (6388)	3/20/1999 2:35:00 PM
From: Ted Schnur	Read Replies (3) \| Respond to of 29970

"I still believe that substantial news of some sort was leaked..." RicheH, Stock rising on no news is not necessarily a bad thing. I now believe that the large block trade (there were at least two others prior to the run-up) was some institutional buying. The first two large block trades did not have an immediate effect on the stock price, so they were probably prearranged with one or more large brokerage house. Now this where Dave Horne's theory regarding a short covering comes in (post #6381) - ATHM's closing high was 125 (1/29 & 3/10), it was trading at around 126 for about 20 min with no sign of any substantial profit taking. - AOL was moving up above short term resistance at 119 (it has already had it's run up for the week) - The S&P was looked stable (started to drop about 1 hour latter). - Trigger happy day traders looking for momentum plays - Market makers that may need to purchase inventory for large block institutional orders. - A stock with limited float in a very hot market sector. - Additional covering of March 125 & 130 call options for those that were hoping that they would expire worthless (not sure how much stock buying this would cause). If I were short a stock that just took out upside resistance, with all of the above to think about, I would cover ASAP! And what you get is … PANIC BUYING! We may see some additional profit taking next week, but the 52 week high bar has been raised and 125 may become a short-term support. No news is sometimes good news. But keep searching, you never know what might leak out! Ted