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

To: JF2155 who wrote (2206)	3/12/1999 4:24:00 PM
From: Kailash	Respond to of 7772

Jim - I appreciate your satisfaction at the relatively lower down volume. Don't be fooled though - on the way up, day traders were buying and selling several times a day, while on the way down there's a lot less trading. Insiders in eBay are disciplined - a surprisingly large number of people are together selling millions of shares little by little. When the volume dries up, as it is doing now, we can expect nothing but steeper drops as the sales keep coming through and no buyers prop up the price. Take a close look at the graphs of the stock as it moved between 200 and 300 (roughly, and pre-split; that's 70 to 100 today) in December and January: sharp rises, sharp falls, no net gain. This is a daytrader's stock and there is no bottom in sight before 100 according to this pattern. As for the fundamentals, this stock has a P/E above the clouds. People say it doesn't matter but that's like saying money doesn't matter - sooner or later only earnings matter. I think you will regret you didn't sell today, but selling on Monday after it recovers a bit from what could be a nasty gap down will lose you less money than holding on. If you like the stock, buy it again further down - let it fill the gap first. Kailash