eBay - Superb Internet Business Model Message Board

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Technology Stocks : eBay - Superb Internet Business Model

EBAY 82.62

-1.5%

3:59 PM EST

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To: Gary Metzer who wrote (840)	11/19/1998 1:46:00 AM
From: Doug Fowler	of 7772

Gary: I think I saw your posts on this a few days ago and am kicking myself for not having bought MALL. I actually did some due diligence on uBid, and it is clear that their sales volume is already quite good. I think it is important to point out that their model is very much like OnSale, with the inherent inventory and low margin issues. Therefore, I would think the market will use OnSale as a basis, compare the current sales volume of uBid to OnSale, and pro-rate. OnSale has a current market cap a little under $500M. Last quarter's sales were $57M. Last quarter sales for uBid were $15M, which would put their stock market cap at about $130M. Looks like MALL has 10M shares outstanding. With the 80 percent, that would make 8M shares of uBid stock for MALL shareholders. That would give MALL shareholders about $15 each for each MALL share. MALL is at around $30, so the question is whether the rest of the business is worth $15 a share. (Not too long ago, MALL was at $5 a share...) Also, there is a lot of insanity now, but NET stocks may have fallen by the time the IPO comes around.

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