It sure would be nice to hear what Steve Harmon has to say about BII. Perhaps he could add it to the ISDEX some day :>)))
>>Up 19.9% In Week:
ISDEX Rides Strong Etail Interest
By Steve Harmon
Senior Investment Analyst
Internet.com
"Where Wall Street Meets The Web"
Perhaps it's no coincidence that the movie 'The Waterboy' is number one at the box office. Playing just up the block on Wall Street is an altogether rather liquid event, ISDEX, up 19.9% in one week. Yes, one week.
Fans of mountain climbing know that sometimes you don't know how far you've climbed until you look back--and looking back since November 3 ISDEX, The Internet Stock Index, shows the most-watched Internet index up 19.9%.
Said another way, in one week Internet stocks have done better than NASDAQ and Dow Jones Industrials have all year.
We're willing to write off some of it as 'delusional exuberance,' a preponderance of fluoride in the drinking water, alien abductions, Newt Gingrich resigning. But we cannot justify this one--can't see clear to an eBay (NASDAQ:EBAY - news) north of 70x our estimated revenue for it next year. 70x. Let's see the numbers.
Here's the part most people don't know -- fully-diluted shares basis EBAY market cap is $7 billion, or $1.8 billion you don't see on first checking its market cap, which is based on primary shares outstanding.
That $1.8 billion floating invisibly off Wall Street's radar is like owning CDNow-type firms 9 times over outright (with a market cap of about $200 million) or it's like owning Onsale.com (NASDAQ:ONSL - news) 4.6 times over (market cap is $389 million). And this is just EBAY's option/warrant pool converted to share value.
The buy ratings and per share targets on EBAY we believe have set it up for a rocketship ride that it better fuel with outstanding revenue and earnings to sustain. If not we all know what happens to rockets with no fuel. Don't get us wrong, we love eBay's etail model. It's traders, shortsellers and the herd bidding on its shares that we believe may be ahead of themselves.
Even with its rise, EBAY shares didn't lead the buying spree. Etail stocks came out on top in percent gains, as investors "rediscovered" sellers of software, PCs, music outside the usual brand-name circle we've seen with the more well-known stocks. Take a look at the list, ISDEX November 3 - 10. What a week:<<
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