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Technology Stocks : eBay - Superb Internet Business Model

EBAY 90.90

0.0%

Jan 9 9:30 AM EST

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To: Doug Fowler who started this subject	3/11/2001 10:28:00 AM
From: KYA27	Read Replies (3) of 7772

High P/E? Know what you are talking abot High P/E? Know what you are talking about! Sell side analysts are, by definition, salesmen. Anyone who are not qualified for other positions can find a job as salesman. This analyst just wants to get a sensational name for itself. I do not like to see what happened to Ebay today not because I long Ebay but because analysts talked trash. I am a strong believer in Ebay. People talk about high P/E as equivalent to over valuation. Ebay's business is expanding rapidly. I believe it can reach its goal -- $3.0b revenue in 2005. At that level of revenue, its net profit margin would be 35%. This puts a profit of $1.05b! Now, those yelling high p/e folks, tell me what p/e you are willing to assign to Ebay? How about 40? This would put Ebay's market cap at $42.0B! Given today's market cap of less than $9.25B and assuming the number of shares to increase by 15%, its share price would be 3.9 times of today's price in three years (42/9.25/(1 + 15%)). That's just my calculation. Do your own first before yelling high p/e, high p/e, ... ..

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