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Strategies & Market Trends : Gorilla Game Investing in the eWorld
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To: Teflon who wrote ()10/28/1999 5:45:00 AM
From: Bruce Brown  Read Replies (1) of 1817
 
eBay report:

Message 11720165

According to the Foolish Five criteria, declining gross margins would be a warning sign. However, eBay had higher expenses to build out their new overseas site, upgrade and build our servers, add the auto component and a few other new features. This accounted for the gross margins not holding steady or rising. This will be something I will be watching for the next two quarters to see if the gross margins can hold steady or rise again. The other criteria were met easily.

1. Sales growth in excess of 15% over the previous year.
2. Gross margins above 50% (and holding steady or rising).
3. Cash savings that amount to 5 times more than long-term debt.
4. Inventory that is not growing as fast as sales over the past year.
5. Receivables that are not growing as fast as sales over the past year.

In terms of the Icarus Scoring, I will revisit that to see if any adjustment needs to be made. The growth in new members at eBay is certainly huge. The business model remains strong, but the price valuation of the stock is the concern. However, I think it is more beneficial for us in this thread to examine the business model and Godzilla Game than concentrate on share price - as one will follow the other. It's a higher risk game - no doubt about it.

I also find it pointless to attempt to discuss it on the eBay thread as it is filled with name calling, day trading 'experts' and little information in regards to investing. I'm not surprised, but wonder what the motives behind it all have to do with one's time on a stock message board?

BB
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