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

To: Educator who wrote (8975)	5/3/1999 11:08:00 PM
From: Ron Dior	Read Replies (1) \| Respond to of 29970

<<shouldn't investors be speculating that it will happen? Shouldn't we have seen a pop in price, instead of a 5% drop? Are investors waiting for that sign-sealed-and-delivered announcement with MediaOne? >> Ed, I agree that is is rather annoying to see this stock drop 5%, on news that should have given it a 20 point pop. I think we have to look at some very important factors though. 1- The net sector is getting hammered by everyone and anyone. 2- ATHM is at the top of the list as one of the over valued, large cap, net stocks that everyone is getting in a nervous frenzy over. 3- T/UMG not a done deal. In a good net sector atmosphere all it would have taken is speculation that this deal was done and ATHM would be up 50%. Unfortunately, with all of this fear and nervousness around right now, it is going to take a more certain push. The reactions to news seem to be delayed on the net stocks lately. For instance, it was announced last week that CDNW was participating in serious talks with TWX about a major deal or possible takeover. It took almost 5 days before the stock started to move on the news. In a better environment, CDNW would have taken off within 5 minutes of that release. I feel ATHM will do the same. If you look at the trades today, the avg. trade was very small. Weaker hands are jumping ship. The one thing that I did see as a positive was the majority of the nets all held above their 50 DMA's. I think the nets could fall a bit more tomorrow, but I do not see them crashing like many are preaching. As the DOW continues its climb, the money has to eventually turn its eyes back toward the techs. I strongly feel that it will happen this week. Keep in mind we are still only about $62 off of our 52wk high. ATHM can make that back easily in 3 days, maybe 2. Now if KO was down $62 points, I would say we had a big problem! LOL. Ron Dior