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

To: Ron Dior who wrote (9871)	5/26/1999 2:15:00 PM
From: UFGator93	Read Replies (1) \| Respond to of 29970

If you look at revenue as a percentage of market capitalization of these that Ron posted, you'll see ATHM's value is the least favorable. This means that theoretically it is going to take substantial revenue growth with no corresponding price increase to justify ATHM's price. And that is with the recently reduced market cap. While pretty much everyone in the universe agrees ATHM will have a strong upslope in revenue growth, I believe either: 1 - Investors won't be patient enough to keep the market cap where it is while waiting for that revenue growth (i.e. they will drop ATHM's price to reduce the market cap). 2 - The general market will downtrend and ATHM will follow. 3 - ATHM, for one reason or another, won't see the unbelievable revenue growth expected. 4 - The internet bubble will finally burst and take ATHM down with it. The possibility of each of these or a combination is why I own puts. I must add, I've been very wrong about ATHM in the past.