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Technology Stocks : eBay - Superb Internet Business Model

EBAY 81.29

+0.6%

9:31 AM EST

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To: SouthFloridaGuy who wrote (2057)	3/8/1999 6:27:00 PM
From: Kimberly Lee	Read Replies (3) of 7772

ONSL's business model = selling $1 US Dollar bills for 75 cents each. The more they sell, the more they lose -- Syquest a la mode. Since ONSL's EPS is sub zero, and EBAY at least have earnings. Any positive earnings/ zero = infinity $35 a share for a business that may not be around for another 2 years is definitely more expensive than paying $171 a share for a company that dominate the entire E-auctioneer sub-sector. In two years, EBAY can easily retreat back to $50 a share while ONSL likely will follow Syquest's path. $171 - $50 = $121, represents a sizable retracement, but $35 - $0.5 (the rate it's going, ONSL will be trading on the bb, at probably $0.5 a share) = 34.50, a much, much larger % loss.

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