In 2003, EBay, the global leader in online auctions, was selected to become part of the FIN 284 portfolio based on the company’s tremendous growth prospects and strong industry position. In the two and a half years since the purchase the stock price has increased significantly and our group has begun to reexamine the security to determine if it is in the class’s best interest to continue to hold the shares.
The majority of our research focuses on areas such as the future of the online auction industry, the potential growth prospects for EBay, and the risks of holding the security versus the benefits of taking profits. To assist in the evaluation of the security our group research includes a valuation model and technical analysis.
Given the results of our research we feel it is in the best interest of the class to liquidate our EBay position and look for alternative investments. It would also be prudent at this point to sell in order to take profits from the nearly 200% return that the stock has generated over the past two and half years. Our recommendation is to sell the entire 600 share position at a price of no less than $35.00 per share.
Contents
Executive Summary
Company Overview
Recent News
Financial Analysis
Valuation Model
Technical Analysis
Conclusion
Bibliography
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EBay Analysis : Sector – Technology Industry – Internet Software and Recommendation – Sell shares
