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Fear & Greed Trader
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Independent Financial Advisor / Professional Investor- with over 25 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
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  • Adding EBay - Online Sales Soar  1 comment
    Dec 2, 2013 4:21 PM | about stocks: EBAY

    I added (NASDAQ:EBAY) to my portfolio today @ 51.30 . I currently have shares that reside in my call writing portfolio. Today's purchase was made with the thought of holding shares thru the holiday season as I believe we will see continued strength in online sales .


    This past weekends results on strong online sales were the first indication of a trend that I believe has legs.

    Technically the stock has gone nowhere in the past year trading in a range of 48 - 58 . It now resides at the bottom of that range and I am suggesting that we may see more 'positives" as the holiday online shopping season continues , lifting shares back to the top of that range..

    (click to enlarge)

    The long term fundamental story is another positive for the company. EBAY is widely known for it's online auction site. However, the company is now a full service e-commerce operation. eBay has quietly put together a powerful combination of digital assets that position the company to thrive in the $10 trillion global commerce and payments markets. eBay provides services to big-name retailers by improving their online retailing business. The company also provides safe, fast and convenient methods for online payment via their Paypal service.

    Paypal had a good third quarter for the company as it reported a 25% increase in payments processed in the third quarter. During that quarter paypal added 5 million new accounts, showing the growth continues. That made the total accounts rise to 137 million or a 18% increase over the same period last year.

    I have targeted a 'fair value" price of EBAY in the mid to upper 60 area.

    That was derived using my propriety stock selection models and Fastgraphs" .

    Disclosure: I am long EBAY.

    Additional disclosure: I am long numerous equity positions -- all can be seen here in this blog

    Stocks: EBAY
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  • Fear & Greed Trader
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    Comments (10764) | Send Message
    Author’s reply » Shares weak on Evercore downgrade
    eBay Outperforming Expectations. ChannelAdvisor (CA) indicated eBay same-store sales for the “Cyber Five” period increased
    29.7% y/y (vs. 38.3% in 2012) with Cyber Monday same-store sales increasing 32% y/y (vs. 55.2% in 2012). CA noted that eBay
    increased its use of promotions this year through its usage of daily deal offerings. CA previously reported 3Q13 growth for eBay of
    19% y/y and 13% y/y in October. For 4Q13, we estimate North America Gross Merchandise Volume (GMV) growth for eBay of 13%
    y/y vs. 14.5% y/y in 3Q.
    4 Dec 2013, 10:33 AM Reply Like
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