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Brad Kenagy  

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  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Here is what is would look like:

    PRESPLIT:

    Shares Company Price Total
    15 eBay 60.5 907.5
    42 Western Union 21.6 907.2

    POST SPLIT- assuming 1/1 Ratio of ebay/PayPal

    Shares Company Price Total
    15 eBay 30.25 453.75
    15 Paypal 30.25 453.75
    42 Western Union 21.6 907.2


    So an investor would have the option to keep shares of eBay inc or sell them right away and hold onto shares of PayPal along with the short position in WU. Also, depending on how bearish someone is on WU, they could sell part of their WU position to get it down to a 50/50 dollar value with the remaining shares of PayPal assuming the eBay stake is sold right after the split.
    Jun 9, 2015. 04:06 PM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    This is simply 50% long eBay, and 50% short WU, you are making it more complicate than it needs to be.

    You are are correct that if you short WU, the investor would be responsible for the dividend.
    Jun 9, 2015. 03:50 PM | Likes Like |Link to Comment
  • eBay's Marketplace Business Looks Unappealing [View article]
    Great article, I agree that the marketplace business is struggling. I agree that there will most likely be a pop when PayPal starts trading, and the remaining eBay marketplace will most likely see a drop. However, in my recent article on eBay I believe investors looking to get into PayPal for the pop and for the long-term can buy eBay prior to the spinoff and sell remaining eBay marketplace shares ASAP after the split.

    Disclosure: I purchased shares of eBay this morning.

    http://seekingalpha.co...
    Jun 9, 2015. 03:33 PM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    The answer to your question is easy, Options 101: If you are bullish on a stock buy a call, if you are bearish on a stock buy a put. In this case buy a eBay Call, and buy a WU put.

    I believe this is how options would be impacted by the spinoff:

    Example:
    -ABC priced at $100 and you own a $100 call, and spins off 1 share of DEF for every share of ABC held.

    -Immediately after the spinoff, new ABC trades for 60 and DEF trades for $40.

    -The old ABC $100 call is adjusted so the holder now holds one call for ABC @ 60 plus one DEF @ 40.
    Jun 9, 2015. 03:23 PM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Thank you for the comment, as I stated in my article "I will present a long-term pair trade opportunity for investors to consider" Long-Term to me means >1 year, so that is the minimum holding period I am talking about for the purposes of this article.
    Jun 9, 2015. 02:03 PM | 1 Like Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Just wanted to disclose that I purchased shares of EBAY today.
    Jun 9, 2015. 01:03 PM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    @erpichtauf Thank you for the comment. To answer your question, No I will not personally be shorting WU myself. This article is my entry for the Seeking Alpha Pairs trade contest, link to details below.

    For investors not comfortable with short selling, there is the options market as well where investors could create a pair trade as well.

    I think you are misunderstanding my trade idea about holding eBay Inc. Post split.

    My idea:

    -Buy eBay and short WU prior to PayPal spin-off.

    AS SOON AS SPLIT OCCURS

    -Stay long shares of PayPal received, sell eBay stake, and remain short WU.

    Therefore, post split you would be left with a long stake in PayPal and a short stake in WU.

    http://seekingalpha.co...
    Jun 9, 2015. 12:23 PM | 1 Like Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Thank you for the comment and your thoughts on adding options to the trade. However it is unclear what the impact on options will be once the split occurs.
    Jun 8, 2015. 10:28 PM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    @Seeker137 Thank you for the comment. Based on my risk/reward analysis and the chart which shows eBay revenues ex-PayPal have been trending downward, and is the reason why I said "I will assume that shareholders will be selling their eBay stock post split because PayPal is the more attractive investment opportunity and the risk/reward of owning shares of eBay post split is not currently appealing."

    PayPal will most likely see a decent sized gain in the first couple days of trading, and eBay will most likely fall by a decent amount, that is why once the spin-off occurs I believe many investors will dump shares of eBay and hold onto shares of PayPal which is what my pair trade creates.

    A long position in PayPal post split, and a short position in WU.
    Jun 8, 2015. 04:15 PM | 2 Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    @BGDD please refrain from poor comments, this is a serious discussion on eBay and Western Union. The comments section of my article is not the place for your harmful comments.
    Jun 8, 2015. 03:46 PM | 4 Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Thank you for the comment, however, I have to disagree with you that there are a number of reasons as I pointed out in my article to buy eBay now to be able to get into PayPal prior to its spin-off. As far as the issue you brought up with the Bill me Later it is a minor issue relatively speaking because they were fined "only" $25 million, and for a company with $8 + billion in sales it is a drop in the bucket for PayPal. Pay a fine and improve disclosures was what the penalty was.

    http://on.mktw.net/1MC...
    Jun 8, 2015. 01:49 PM | 3 Likes Like |Link to Comment
  • The #1 Stock In The World [View article]
    A few things I forgot to add:

    -I found that XIV has a maturity date of Maturity Date 12/04/2030, so after that time Credit Suisse would have to issue a whole new product.

    -"If you hold your ETN as a long term investment, it is likely that you will lose all or a substantial portion of your investment."

    http://bit.ly/1MBLtlf

    -There is no chance that XIV ever pays a dividend

    -"We have the right to accelerate the ETNs and pay you an amount equal to the Closing Indicative Value on the applicable Accelerated Valuation Date, on any Business Day occurring on or after the Inception Date."

    XIV prospectus: http://bit.ly/1IyaFdH
    Jun 8, 2015. 10:48 AM | 6 Likes Like |Link to Comment
  • The #1 Stock In The World [View article]
    Chris,

    XIV is not a stock it is a Exchange traded note. How can you even consider XIV a stock, when it has no underlying business, no revenues, no earnings, and is not a company which was the only requirement from Mike's series. You should change your title to "The #1 INVESTMENT In the world" so that you don't confuse readers into thinking XIV is a stock.

    "An exchange-traded note (ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer."
    Jun 8, 2015. 10:23 AM | 8 Likes Like |Link to Comment
  • Visa: The World's #1 Stock [View article]
    @mark07yu, thank for posting your thoughts on Visa's value.
    Jun 5, 2015. 02:42 PM | Likes Like |Link to Comment
  • Visa: The World's #1 Stock [View article]
    Yes there is upside but I would rather buy on a big down day then on an up day.
    Jun 3, 2015. 12:25 AM | Likes Like |Link to Comment
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