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To: wlheatmoon who wrote (4658)	10/26/1998 4:30:00 PM
From: SJS	Read Replies (2) \| Respond to of 14427

Mike....Hint Hint. They are about to make money. I agree there is speculative fevor here, but eBay model is a much-honed version started by ONSL, who now find themselves with a not-as-profitable (ie WRONG) model and are changing to eBay's style.... ______________ EBAY INC (EBAY) 65 7/16 +15 5/16. DLJ Internet analyst Jamie Kiggen grabbing headlines today after issuing an eye-popping 12-month price target of $100 on shares of person-to-person online auctioneer eBay. The comments have sparked a 31% rally in the stock (intraday high $65 9/16, open $60), on heavy volume of 2.5 million shares. Benefitting from the trickle down effect of frenzied buying are shares of former high-flyer Onsale Inc (ONSL 17 7/8 +2 5/8). The recently out-of-favor ONSL is in the process of transitioning itself from what amounted to an off-price retailer (disposing of close-out computer products) to a person-to-person auction shop with wider margins and lower carrying costs. However, as we reported on Oct. 19 following ONSL's Q3 earnings report, the company still has millions of dollars of inventory to unload and margins are showing little improvement. But back to eBay. According to Kiggen, EBAY displays all of the characteristics of an Internet category leader: a huge market opportunity, significant competitive barriers, an increasing returns business model, and a massive, loyal and growing customer base. In a research report issued last week, BancBoston Robertson Stephens forecast that eBay's auction revenues could vault to $350 million by 2001 and earnings could explode to $1.50 a share. EBAY is scheduled to report Q3 earnings tomorrow after the close. The mean estimate of the five analysts surveyed is $0.03 a share, but Briefing.com feels that there is little chance EBAY won't report an upside surprise. We haven't seen this type of institutional fervor attached to an Internet name since Amazon.com (AMZN) came to market. It appears that eBay has been chosen by analysts as the next market darling. In fact, Kiggen goes so far as to recommend that investors consider includingeBay as one of the core holdings in their Internet portfolio.