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

To: TokyoMex who wrote (1986)	3/6/1999 12:04:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 7772

The thing he doesn't tell you is that when it falls 50%, it will take 75% of the people who own the stock into red territory. For all you believers out there, consider this. I read an article that said there is growing belief that amazon will be bankrupt within 3 years. Why? Because the banks are coming off their euphoria at lending to an Internet company and are starting to wonder if they will ever be able to collect on the debt amazon has (they borrowed $75 M last year and $325 M this year). Also Amazon's cash flow sux because margins are so slim. Amazon will never make money yet its market cap is $19 B! Go figure. So for those of you wondering how to value a company, try calculating price to economic cash flow. This measure has proven itself to have more correlation to market value than PE. Here is a link to an article that I suggest you all read on valuing today's companies: rcmfinancial.com When I have time, I will try to value E-Bay based on the above premises and see what I come up with. Good luck folks!

To: TokyoMex who wrote (1986)	3/7/1999 11:00:00 PM
From: George Gotch	Respond to of 7772

This is why I was in in the thirties but, we have to be realistic. I don't care how special or unique a company is. In a free capital system especially with the net where something new can pop up overnight we can't be blind to the fact of how much it has gone up in value in such a short time. There is a lot of premium priced in there for continuing solo success. Keep in mind, I have no position in the stock just stating we are not back in December. Heck even Dell took longer than 4 months to increase 10 fold. Thanks for the acticle though. It does state some interesting views on this approach. Good Luck!

To: TokyoMex who wrote (1986)	3/8/1999 10:47:00 PM
From: Buster O. Hype	Read Replies (2) \| Respond to of 7772

Motley Fools love EBAY ... no wonder they subscribe to the greater fool theory ... $20 billion market crap. Assume 2X sales when industry matures. So an annual sale of $10 billion for EBAY. Assume 5% commission, so gross auctions of $200 billion. Does anyone really believe internet auctions will reach this level. Perhaps retailers like Amazon will do some $10-20 billion in the future, but online auctioneers???? The market is currently valuing EBAY as doing tens to hundreds of billion annual auctions business. Walmart, incidentally has sales of $130 billion last year