With eBay's stock price under $35 and only a few
dollars from its 52-week low ($31.20 on April 27, 2005 ... if you're counting), it could be a good deal. Do I hear
the words, "buying opportunity"? It's definitely been selling these past few days, with volume more than 50%
higher than average and prices slowly falling. At just over 45 times, the company's P/E ratio is pretty high. But it's
been way higher and it's no less of a great company than it was two years ago.
It seems that, every day,
more people use Paypal and Skype, and someone else tells me they'll check for a skein of handpainted yarn or a used
cell phone on eBay instead of buying it IRL. Who wants to get in the car and go shopping, after all? (Not to mention:
you'll save gas. Always a good
thing.)
There are always two questions I ask when I'm thinking about the future prospects of a stock; one is
am I spending my own money there? and the second is, do I believe in the management team? The answer
to both questions, for me, is still "yes." I think I'd wait until eBay dips a bit lower, but under $35 is
definitely a sweet spot for me.
eBay before the bell: buying opportunity?
Related Posts
- Companies that vanished: Woolworth's, the granddaddy of the five-and-dimes (27 days ago - 57 Comments)
- France rules against eBay: Another nail in the coffin? (5 days ago - 8 Comments)
- Option Update: eBay July volatility elevated at 46 into earnings (5 days ago - 0 Comments)
- Before the bell: AAPL, YHOO, BP, ADBE, PEP (18 days ago - 1 Comments)
- Analyst upgrades: HRB, TLB, SPWR, AG, EBAY, SNDK (19 days ago - 1 Comments)
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
Starbucks: The next McDonald's
Reader Comments (Page 1 of 1)
4-27-2006 @ 8:59AM
Rick Hoffman said...
It appears that there has been an exit of some institutional ownership and also pressure for option automatic sales by executives. most important though, is the obvious amount of block short selling. I belive that your take on the value of the stock, considering the current retailing environment is totally correct. so,I am a buyer this morning, and will love to se the probable short squeeze that will be in the near future