Long Position on ATHM @ $50.75 on 9/4/2014 (Momentum)

Autohome Inc. (ATHM) operates as an online destination for automobile consumers in the People’s Republic of China.

The company through its Websites, autohome.com.cn and che168.com delivers independent and interactive content to automobile buyers and owners, including professionally produced content that comprises automobile-related articles and reviews, pricing trends in various markets, and photos and video clips; automobile library, which includes a range of specifications covering performance levels, dimensions, powertrains, vehicle bodies, interiors, safety, entertainment systems, and other unique features, as well as manufacturers’ suggested retail prices; new and used automobile listings, and promotional information; and user forums and user generated content.

Autohome Inc. also offers advertising services for automakers and dealers; dealer subscription services that allow dealers to market their inventory and services through its Websites; used automobile listings services, which allow used automobile dealers and individuals to market their automobiles for sale on its Websites; and automobile dealer subscription services that enable dealers to establish and maintain online showrooms of automobiles with pricing and promotional information on autohome.com.cn.

In addition, it operates automotive aftermarket services platform that integrates services descriptions and pricing information into a database that enables its users to identify and research local automobile services shops, schedule various services with them, and offer real-time feedback on the service providers; provides iOS- and Android-based applications to allow its users to access its content; and offers technical and consulting services.

Shares of this recent IPO have formed a tight bullish "cup and handle." We expect higher share prices for this stock.

52-Week Trading Range: $26.51 - $57.93

Entry Point: $50.75

Stop Loss: $48.20

Target Price: $55.82

Updates

9/5/2014 9:37:45 AM

ATHM fell below our stop loss. Closed at $48.00

Position closed on 9/5/2014 at price of $48.00 with a -5.42% loss in 1 days.

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