posted on May 16, 2003 03:33:28 PM new
Hello, fellow Vendio-ites (Well, I can't say
hello Auctionwatchers anymore).
Sorry if this has been covered before, but does anyone know what stock ownership in ebay entails? I don't know a whole lot about the stock market, so please forgive the rudimentary questions. Do stockholders get the right to attend meetings in person or proxy vote through the mail? Does ebay in particular pay dividends, or have a DRIP plan (dividend reinvestment plan)? Would they mail each investor any annual reports or perks?
posted on May 16, 2003 04:22:59 PM new
Stockholders can attend meetings. eBay pays no dividends, and therefore there is no DRIP.If the stock is in your name , they will send you the annual reports.
Stock in eBay also entails a 70+ PE, and a market that sooner rather than later will not see the growth it has experienced in the past. You kinda missed the boat for buying this stock by a few years.
posted on May 16, 2003 05:01:07 PM new
Only one of a rare handful of internet darlings that actually make money, ebay is very vulnerable to a huge selloff of it's stock when it finally does report weak numbers. I wouldn't want to be holding a lot of that stock when the bottom falls out.
posted on May 16, 2003 05:10:53 PM new
The 70 PE indicates that those holding the stock believe that the earnings will at the least double what they presently are.
eBay should be able to squeeze out some more revenue growth, but less than the historic growth, and they may be able to cut expences to add to earnings.
posted on May 16, 2003 05:16:53 PM new
Wanted to add- eBay might be a "buy" in anticipation of a stock split. I found only two splits (3 for 1 and 2 for one) in their history, and this would be a good reward in lieu of a dividend. But, with the proposed tax treatment coming for dividends, dividends might be the way to go. In any event, look for a split if the stocks floats long above $100.
posted on May 16, 2003 06:44:04 PM new
stock split without an increase in dividend is just dividing a pie into 8 pieces instead of 4 pieces.you used to get one piece when it was cut into 4,now you get 2 pieces,BIG DEAL,nothing has changed.
if you think PE of 70 is too high,what do you think of YAHOO or worse AMZN.
posted on May 17, 2003 09:40:40 AM new
A stock split can be desirable even without dividends. It allows the holder to sell of part of the holdings and only pay capital gains tax, and still hold more shares than before. Selling split shares into capital gains is a more desirable position than a dividend increase - or even a dividend; it allows you to hold a numerical share position and still take profit.
posted on May 17, 2003 12:53:17 PM new
Actually the PE is now 100! Too rich for my blood. A friend of mine just shorted it yesterday. Only time will tell.
posted on May 17, 2003 01:08:43 PM new
reamond.
you and my mother should get together.
you can do the same with pre split stocks and you may even pay less commission when you sell.
but what stock split does is improve the float and thus liquidity of the stock making it less volatile.
selling on ebay is expensive,i often wonder who can afford listing 'borzoi address labels' for 1.95 over and over again??
or how about char pei crossing sign?
posted on May 18, 2003 03:56:25 PM new
For advice on the stock market, you're (much!) better off reading a site like Fool.com , rather than asking posters at Vendio boards. A lot of people are all too happy to give advice on subjects about which they know little. And i know 1st-hand about people giving others unqualified advice.
Edited to fix typo
[ edited by jrome on May 18, 2003 07:24 PM ]
