Possible EBAY bottom

B

BudFoxx

This is more of a technical play. No near term catalyst insight, but seems due for an oversold bounce. inets still weak, but due to bounce if comp runs more. Either way.. Good for a trade here for swing players.

EBAY $ 23.50
eBay Inc. -0.15
Shares Short 50,040,163
Days to Cover (Short Ratio) 2.9
Short % of Float 4.59 %
Shares Short - Prior 46,420,328
Short % Increase / Decrease 7.80 %
% from 52-Wk HIGH ( 47.86 ) -103.66 %
% from 52-Wk LOW ( 23.41 ) 0.38 %
% from 200-Day MA ( 34.47 ) -46.68 %
% from 50-Day MA ( 27.48 )
-16.94 %
Price % Change (52-Wk) -45.77 %
Trading Volume - Today 7,125,522
Trading Volume - Average 17,138,880
Trading Volume Vs. Avg. 41.58 %
Total Shares - Float 1,090,000,000
Total Shares - Outstanding 1,415,394,158
% Held by Insiders 16.53 %
% Held by Institutions 66.30 %
Market Cap 33,261,762,713
EPS 0.72
PE Ratio 32.80
 

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Look at it's fundamentals and the technicals, and you can see why it's up 5% today. Here's an article from my blog: http://trading-notebook.blogspot.com



Sarah Gilbert over at 'bloggingstocks.com' writes that:
"The stock has taken a beating thanks to management exiting under questionable circumstances, potential competitive threat from Google, worries that Skype may be a money-losing (or at least, no-money-making) proposition".

So EBAY's value has fallen by half purely based on concern and worry. Why aren't people jumping to buy at any of this news:


Revenue from eBay's marketplaces rose 22%, while the company's gross merchandise volume rose 18%. Sales for the operator of the world's biggest
online marketplace rose 30% to $1.41 billion, also in line with
expectations, as revenue from eBay's PayPal payment business rose 39%
to $339 million.

In the second quarter earnings call on July 19, EBAY reported a growth rate of 30% over the prior year quarter. The 2Q EPS was right on the estimate at 0.20.

In the mean time, on July 26 - Analyst Robert S Peck of Bear Stearns upgrades eBay Inc (EBAY.NAS) to "outperform." The target price is set to $33. And by July 31 - Analyst Mark J Rowen of Prudential Financial gives a target price of $40.

Take a look at the current financials and you will notice that EBAY is also not taking on debt to finance this fantastic growth.
 
i actually covered my long term ebay short position on 7/27 @ 23.70, also thinking that we might see a bounce/consolidation period at these levels.
 
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