|
Ditto, I believe that Ebay is a pineer player in a new field. Traditionsal valuations have nothing to do with the price of stocks in the internet sector, at least for the time being. Till consolidation happens, and the new territory is divided, the pioneers such as Yahoo, Ebay, Amazon will be valued by future potential, rather than by current earnings. "Value" investors should try investing in Transamerica(TA) with a PE of 3 or Ford with similar valuation. I hope that everybody understands what's happening now in the internet sector is to restore the upper hand for the "institutional " investor vs. the individual . Having said that, i agree that Thursday was a bad day for the Tech sector and for Ebay.There may be more bad days around the corner. There will be a lot of volatility ahead, but once the stock split happens, price should stabilize around $ 85-90 post split, that is $ 255-$ 270 pre split. It is classical wall street . Look at the grand daddy of them all IBM, it lost 15% off its peak value less than 10 days ago, for no clear reason, just building in steam for post split surge.
Good Luck to all |
