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

To: rel4490 who wrote (9249)	5/7/1999 9:49:00 PM
From: Chia-Bin Wang	Respond to of 29970

RE: Conflict of interest --------- IMHO ------------- T is about 5x the cap size of ATHM+XCIT. T has 3B outstanding shares and ATHM+XCIT will have about 250M. If you believe that the stock price growth will be proportional to the EPS growth, then what will you do to share the pie between T and ATHM+XCIT? If (assume 10B revenue) the profit pie go to T, maybe T go 50% higher. Then I think ATHM+XCIT will go 10000% higher if the other case. If you compare IBM and DELL, you will see how the EPS growth along with revenue growth affect the cap size of a company.