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eBay Inc. Message Board

  • euwolfie euwolfie Oct 10, 1999 3:55 PM Flag

    Manipulating earnings

    PALO ALTO, Calif., Oct 10 (Reuters) - Internet
    investors seeking some hard data on the performance of
    their dot com companies may have a hard time finding it
    in the earnings reports coming out over the next few
    weeks.

    ...very interesting article that goes into quite a lot of
    detail about how earnings are manipulated. I don't know
    how to post links, so just go to
    (YHOO:News)

    Bottom line or article is following: "While all these
    accounting quirks usually spelled out somewhere in the
    income statement or the footnotes, they rarely make the
    headline or the sound bite.

    First Call's Hill says
    companies may reason they can temporary inflate earnings
    since they are young and have dizzying growth
    prospects. The danger, he says, is that if business doesn't
    improve quickly ``things are eventually going to catch up
    with them.''"

    So, it is true, its really,
    really true. They cheat and lie and manipulate. And this
    guy says it will catch up with them, too.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • unfortunately, my opinion of an appropriate P/E
      for EBAY has nothing to do with reality. Like I've
      said before, I was chicken to buy this stock at 70.
      So, in the "ends justify the means" world, I was
      wrong.

      Historically, stocks with a P/E of over 20 are considered
      overvalued. More slack is given to tech stocks because they
      could have the potential for faster growth with the
      right breaks. These stock with P/E of over 100 and most
      INETs that don't even have P/E are a joke.

      I do
      believe that some day these crackheads will wake up (i.e.
      tulip mania), but I don't have a clue when that will
      be, and I think it will require some major shakeup. A
      Y2K fear sellof could be it, but who knows.

      As
      for the name calling, it more me yelling at the
      market in general because this pig refuses to die.
      Because I come from the old school that stock represents
      a piece of the company and should therefore reflect
      value, I can't stand seeing comments like P/E doesn't
      matter, or 100 is good, blah blah blah.

      Happy
      hunting.






      Oh, and

      DIE PIG DIE!!!!!!!!!!!!!!!!!!!!!!!!

    • I've see that u r more intelligent than me w/ u'r
      name calling, "analysis" of ebay's relatinvely high
      p/e.

      If u READ the first part of my post, I was merely
      pointing out yahoo's miscalculation of ebay's p/e & thrown
      in my #'s to supported it.

      Any smart
      investors will tell u that a stock's relative p/e to it's
      peers is one of the many indications of a stock's
      performance.

      So, tell me, what is an appropiate P/E #
      for ebay?

    • Are you actually posting that 2518 is a good P/E
      ratio?? Are you actually that stoooopid, or do you just
      play one on TV? Yes that P/E is more or less correct
      based on the past years earnings. Now are we going to
      ignore the fact that 5 cents /share of that .01 gain you
      posted was interest income?

      Some shorts will
      claim 2518 is overvalued? so you are telling us that it
      is a good value?? Are you actually that retarded?
      Would you pay the market cap if you were going to buy
      EBAY? All you would get in return is a few server boxes
      and about 200 clowns sitting around in their
      underwear in somebody's basement with labtops and a
      fuzzball table.


      In response to you "Did I did
      anything wrong"... well I guess that speaks for itself.

    • The bad news re: more competition, the insider
      sales, the revised earnings because they couldn't meet
      otherwise, the fact that they had to go to the secondary
      offering in Q2 to make some earnings in interest because
      they probabley couldn't do it otherwise, the purchase
      expenses, the downtimes. All these indications do not
      matter Justz, you see the shorts thinking this is a no
      brainer sell shares to the MM on upticks and the insiders
      slip in sales in between on the bids this keeps the
      stock up, a little news Ei: "Ebay auctions a human
      liver for 15 million , big commisions in Body
      parts"haha, comes out. The squeeze is on. Now do you
      understand how it is that this stock can only go one way and
      that is up?
      DO NOT SHORT THIS STOCK THE SHORT
      INTEREST IS TO HIGH IT WILL KILL YOU

    • "When and if we get around to distributing them,
      (our limited partners) will be free and clear to sell
      them without filing" additional documents with the
      SEC, says Robert Kagle, a Benchmark partner and eBay
      board member. "We're going to distribute some portion
      of the total holdings in the fourth quarter," he
      adds. "But it doesn't do anybody any good to be in a
      hurry."

      Were all the shares in question to be
      sold, however, that would increase eBay's current float
      by 46%. That increased liquidity can cut down on
      volatility but also tends to add near-term pressure to a
      stock.

      One other nugget in eBay's filing
      demonstrates just how serious eBay is about fixing its
      technology problems. According to an offer letter reproduced
      in the filing, eBay's newly hired technology maven,
      ex-Gateway (GTW:NYSE) executive Maynard Webb, is receiving a
      gargantuan compensation package. Webb will be paid an annual
      salary of $450,000 and a bonus of up to $300,000. He
      also received 500,000 options to buy eBay shares and a
      signing bonus of $108,000.

      In comparison, eBay
      CEO Meg Whitman's salary in 1998 was $145,833,
      according to eBay's April proxy statement. Her '98 bonus
      was $100,000. Don't jump to the conclusion, however,
      that Whitman is underpaid or that Webb is overpaid. As
      of April, Whitman held 7.1 million shares and
      options. The strike price of her options is less than 7
      cents. Yes, cents. Webb's options were priced at eBay's
      stock price when he joined the company. eBay announced
      his appointment Aug. 9, when the stock was worth
      about $80.


      As I mentioned before it's stock
      from the other Universe where rigging, fraud,
      unethical practices are the norms. However, the above news
      is good for Ebay longs as they can go into buying
      spree. Please keep buying as much as you can as it's the
      only way to feel and taste the insane
      world.

      Good luck and happy buying!

    • the gravity and trade @infinity very soon. The
      news is a few days old and u probably already read
      parts of it but here is the full version and may let
      you think twice.

      With Stock Prices High and
      Cost Low, eBay Insiders Have It Better Than You
      By
      Adam Lashinsky
      Silicon Valley Columnist
      10/4/99
      7:00 AM ET




      Every now and then the
      typical investor gets a cold lesson in the power of
      investing by the privileged -- the venture capitalists and
      insiders who buy outrageously cheap stock and don't have
      to worry about the public market's whims.


      Such a lesson arrived quietly late last week for
      shareholders of eBay (EBAY:Nasdaq) in the form of a
      little-noticed filing with the Securities and Exchange
      Commission. The company disclosed that the inevitable is
      occurring: Benchmark Capital and insiders of four of eBay's
      recently acquired companies are putting themselves in a
      position to sell the bulk of their remaining eBay
      holdings. The effect -- when the venture capitalists and
      insiders dump their shares -- will be to boost by 16
      million shares eBay's float, the portion of shares
      outstanding available to be traded by the public.


      None of this is shocking. If you acquired shares in a
      company or its predecessor for a few cents or dollars and
      those shares are now worth 138 9/16 (eBay's close on
      Friday) each, you'd be nuts not to sell. Furthermore, VC
      firms aren't in the business of holding stock. They
      typically distribute shares to their limited partners, who
      are then free to hold or sell. In fact, the first
      time Benchmark distributed eBay shares in February, a
      minor -- and totally harmless -- selling spree ensued
      by a Who's Who of Silicon Valley at split-adjusted
      prices in the 70s.

      But it will be somewhat more
      telling to see what the entrepreneurs who sold their
      businesses to eBay for stock do with their shares. Like the
      VCs, they'd be crazy to hold on. But if they get rid
      of all their holdings, it will make a strong
      statement about their thoughts on the company's future.
      According to eBay's SEC filing, shareholders of Kruse
      International are registering for sale 88% of their nearly
      700,000 shares, former owners of Billpoint (including
      four different Sequoia Capital partnerships) may ditch
      91% of their holdings, and ex-alandro shareholders
      are registering 93% of their shares. And Benchmark,
      which earlier this year acquired the shares of
      real-world auctioneer Butterfield & Butterfield, is
      registering 79% of its 17 million-plus shares.

      Again,
      this doesn't mean the shareholders registering their
      shares will sell, though it doesn't take a PhD to know
      what's likely to occur. Still, the filing technically
      means only that the shareholders will be able to sell
      the shares down the road without regulatory hassles.

    • gravity and trade @infinity very soon. The news
      is a few days old and u probably already read parts
      of it but here is the full version and may let you
      think twice.

      With Stock Prices High and Cost
      Low, eBay Insiders Have It Better Than You
      By Adam
      Lashinsky
      Silicon Valley Columnist
      10/4/99 7:00 AM ET





      Every now and then the typical investor gets a cold
      lesson in the power of investing by the privileged --
      the venture capitalists and insiders who buy
      outrageously cheap stock and don't have to worry about the
      public market's whims.

      Such a lesson arrived
      quietly late last week for shareholders of eBay
      (EBAY:Nasdaq) in the form of a little-noticed filing with the
      Securities and Exchange Commission. The company disclosed
      that the inevitable is occurring: Benchmark Capital
      and insiders of four of eBay's recently acquired
      companies are putting themselves in a position to sell the
      bulk of their remaining eBay holdings. The effect --
      when the venture capitalists and insiders dump their
      shares -- will be to boost by 16 million shares eBay's
      float, the portion of shares outstanding available to be
      traded by the public.

      None of this is shocking.
      If you acquired shares in a company or its
      predecessor for a few cents or dollars and those shares are
      now worth 138 9/16 (eBay's close on Friday) each,
      you'd be nuts not to sell. Furthermore, VC firms aren't
      in the business of holding stock. They typically
      distribute shares to their limited partners, who are then
      free to hold or sell. In fact, the first time
      Benchmark distributed eBay shares in February, a minor --
      and totally harmless -- selling spree ensued by a
      Who's Who of Silicon Valley at split-adjusted prices in
      the 70s.

      But it will be somewhat more telling
      to see what the entrepreneurs who sold their
      businesses to eBay for stock do with their shares. Like the
      VCs, they'd be crazy to hold on. But if they get rid
      of all their holdings, it will make a strong
      statement about their thoughts on the company's future.
      According to eBay's SEC filing, shareholders of Kruse
      International are registering for sale 88% of their nearly
      700,000 shares, former owners of Billpoint (including
      four different Sequoia Capital partnerships) may ditch
      91% of their holdings, and ex-alandro shareholders
      are registering 93% of their shares. And Benchmark,
      which earlier this year acquired the shares of
      real-world auctioneer Butterfield & Butterfield, is
      registering 79% of its 17 million-plus shares.

      Again,
      this doesn't mean the shareholders registering their
      shares will sell, though it doesn't take a PhD to know
      what's likely to occur. Still, the filing technically
      means only that the shareholders will be able to sell
      the shares down the road without regulatory hassles.

    • Internets (HHHers) off 2% on the day, YHOO off %5
      on the day (on double avg daily volume). EBAY off
      less than 1% on about 1/3 average daily volume. Seems
      this stock is doing much better than the internets on
      the whole. What do I know? I'm just a
      novice.

      WOOF!

    • What the hell is going on with price movement in
      this stock. It's like someone who is learning how to
      swim. It can't actually keep his head up, and on the
      other hand it won't go down because somebody will help
      it not to do so. and look at the volume. nobody is
      buying this bagger and nobody is selling it either.
      Whatever the reason, in my opinion EBAY IS DONE!!!!!!

    • Nasdaq is screaming up and Ebay is barely participating on extremely low volume. Watch it go into the red by the close.

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