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

To: J. C. Dithers who wrote (2286)	3/15/1999 10:38:00 PM
From: Buster O. Hype	Respond to of 7772

The fact that EBAY's market cap is already $20 billion shouldn't be ignored. Just last year, AOL, the blue chip internet stock which Wall Street loves was worth $20 billion. It took several years for AOL to reach this, for skeptics to be converted. And at the point when AOL was $20 billion, nowhere was it as overvalued as FLEABAY. AOL is a gatekeeper of the net. Aside from this, it has recurring revenues. It will have decent margins in the 40-50 of gross sales and have a very good chance of maintaining it. In contrast, EBAY, while arguably have very good gross margins in relation to revenue, but very poor in relation to gross sales. It doesn't have much to offer as proprietary, it is not a gatekeeper. Shorting EBAY at $20 billion market cap is a good bet if one is willing to ride it out. My strategy is to short and sell puts, then use some of the premium to buy long term out of the money puts. As a hedge, I'm long on the quality names like AOL, EGRP. Even NSOL has a better future than EBAY. Long also on the quality techs that benefit the most from the net like EMC, SUNW, ORCL.