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Technology Stocks : eBay - Superb Internet Business Model -- Ignore unavailable to you. Want to Upgrade?

To: Doug Fowler who wrote (4226)	7/24/1999 11:53:00 AM
From: Robert Rose	Read Replies (2) \| Respond to of 7772

<Just noticed that eBay stock market cap is down to $13.5B, and more than 50 percent off its high. Is it cheap or is it still overvalued? > The stock has steadily declined 30% from 150+ this month alone. It is now touching a very important support level, which, if the bull market is still intact, custom dictates it should bounce off of. It is hard for me to fathom the e report and cc doing anything more than confirming scaled-down expectations. Given sector doldrums (at best) in August, I am expecting a dead cat bounce of perhaps 5% from here. A dearth of (good) news and the specter of more bad news could push the stock down further over the next few weeks. I expect a test of 100 before a late summer/fall rally adds umph to the stock price. Remember that ebay remains wildly overvalued by traditional measures: pe of 1647 and p/s of 165, for example. With the sector trending toward more realistic valuations overall, ebay will follow.