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Strategies & Market Trends : Rande Is . . . HOME

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To: Mark Konrad who wrote (52603)	6/23/2001 3:30:50 PM
From: J. C. Dithers	Read Replies (2) of 57584

Mark, look at these numbers, EXDS vs. EBAY Total Sales: EXDS $103B EBAY $500M Total Cash: EXDS $104B EBAY $588M Book/Share: EXDS $3.82 EBAY $3.87 Sales/Share: EXDS $2.31 EBAY $1.78 Price/Book: EXDS 0.44 EBAY 16.29 Price/Sales EXDS 0.73 EBAY 35.41 CURRENT PRICE: EXDS $1.69 EBAY $67.79 Granted, EBAY is profitable (modestly!) and EXDS is not. But EBAY has a longer history, and they were cut plenty of slack in their formative years when they were not making money (share price was higher then, than it is now, just based on expectations!). There is no way that these respective valuations make any sense whatsoever. We may be a new era where "show me the money" is important, but that doesn't change the fundamental precept that you don't necessarily make money when you are building market share as a new company in a new market. Nor does it help to say EBAY is over-valued, because we're talking about the same current time period where these valuations are being given. Actually, I like EBAY, although maybe not at this price. But these respective valuations are crazy. EXDS has some real problems right now, but who doesn't? I'm taking a modest position in EXDS at these prices. JC

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