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

To: Tom Hua who wrote (2365)	3/25/1999 9:46:00 AM
From: The Saint	Respond to of 7772

To: donkeyman (13042 ) From: waldo Thursday, Mar 25 1999 8:56AM ET Reply # of 13084 Takeover speculation boosts Bid.Com Thursday, March 25, 1999 Mark Evans Technology Reporter Bid.Com International Inc. shares continued to surge ahead yesterday, propelled by interest from investors in the United States and speculation it could be a takeover target. The Toronto-based on-line auction house closed up $1.95 to $10.20 on the Toronto Stock Exchange after reaching a record $10.85 earlier in the day. It was the most actively traded issue in Canada with 10.2 million shares. Mark Pavan, an analyst with Yorkton Securities Inc. in Toronto, said the rumour de jour is that Bid.Com may be acquired by San Jose, Calif.-based Ebay Inc. "I think it's a reach because they have two different business models," he said. "Ebay is in the person-to-person auction business and Bid.Com is more business-to-business." Nevertheless, investors' enthusiasm about Bid.Com rumbles along. The company's stock has climbed 58 per cent this week and more than tripled so far this year. Ebay has been one of the Internet's most spectacular stock performers. Since going public at $18 (U.S.) a share in September, it has soared nearly 25-fold to $436 (on a pre-split basis) and now sports a market capitalization of $17.6-billion. Montreal-born Jeff Skoll, Ebay's vice-president strategic planning and analysis, owns a 20-per-cent stake. Buying Bid.Com, which is worth about $400-million (Canadian), would be a drop in the bucket for Ebay, which could easily pay for it by issuing some of its stock that's trading at a price-earnings ratio of 3,115. "The stock [of Internet companies] are rich because these companies are expected to expand," said Steve Harman, an analyst with Internet.com in San Francisco. Bid.Com's appeal to investors in the United States is gaining momentum because the company has filed an application to list on the Nasdaq Stock Market. It's expected to start trading by mid-April. Report on Business Company Snapshot is available for: Globe and Mail W