First, let me say I'm long BIDS <g> and I fully believe it has legs yet. Looooong legs.
However, it is worse than simplistic to simply average the market cap of two auction companies to use to value this one.
- Different businesses (business-to-consumer versus consumer-to-consumer)
- EBAY was the first and gets much higher valuation because it's leading, just as YHOO gets valued much higher than the other portals
- BIDS is Canadian and has little mindshare in a not-uncrowded US market of auction sites, who already have US mindshare
- BIDS doesn't have the bonus of a heavily-anticipated IPO; it simply starts listing on NASDAQ and IMHO as a consequence can't expect the excitement and consequent pop of the others on listing (it'll get a pop, all right, but IMHO not the 100% and up an Inet IPO gets these days)
I had XCIT when it was taken out by ATHM, and LCOS as it started its run-up (before that ran out <g>). Especially LCOS, but even XCIT before its take-over, the threads were FULL of people who thought if YHOO traded at X multiple, so should XCIT/LCOS/SEEK/whatever.
Things just aren't that simple. Wish they were.
Dagan/GN, before you even *consider* using any of this to cast aspersions on BIDS, its business or chances, DON'T. I said it, I'll say it again, this is a great stock, still undervalued, still lots of room to go. I just try to stay rational on this all.
WUWT |
