posted on September 30, 2001 02:18:56 PM new
I'm sure y'all have been waiting impatiently to see what roofguy has to say about that.
I won't come here to tell you that this is some low-risk kind of deal. In fact, I'll agree that some of the skeptics have valid points. Read the prospectus for your self, take the negatives seriously. Ok?
Now I'll tell you why this might turn out to be a rare opportunity.
1. We're in a crisis of equity values. This offering will not be priced to value PayPal at the hundreds of $billion which previous IPOs have valued companies. Expect a valuation consistent with contemporary times. A whole lot of value for the money.
2. PayPal has been a pioneer in the online payments industry. No one else believed it could be done at all. Well, that's not quite true. Prior failed experiments focused on buying "paymentbucks" which could be sent to merchants who accepted "paymentbucks". What PayPal pioneered was person-to-person online payments. Others have followed, but all of them continue to watch PayPal's results on various matters. Bottom line: PayPal has 100 times more experience in this industry than everyone else combined.
3. The online payments industry continues to expand rapidly. It's just too good of an idea to ignore. The bulk of this expansion continues to go to PayPal.
4. There is a realistic possibility that PayPal will be acquired by a larger financial institution within the next year or two, and at a substantial premium to the IPO price. This possibility increases as PayPal's customer base and cash flow increases, and is somewhat independent of PayPal's immediate profitability. Imagine PayPal owned by a large bank, and you'll see where the idea makes a whole lot of sense.
posted on September 30, 2001 02:50:41 PM new
I wouldn't touch PayPal stock with a ten foot pole. Talk about a loosing prop. As soon as your bank and my bank all figure this thing out PayPal will be left in the dust and I for one can't wait to see that.
PayPal is only alive because ebay lets them live. Ebay could shut them down on a whim, all they ahve to do is lower billpiont fees and require all sellers to accept billpiont.
Ebay will probably be the one to buy them, then it's bye bye paypal, bye bye now.
posted on September 30, 2001 02:58:48 PM new
roofguy,
I think this is the perfect opportunity to recoup the $10 that is in my restricted PayPal account and the $20 bank chage connected with initiating a stop payment debit ACH transfer against PayPal.
I'm selling "PyPl" short, but good luck to you and any investments that you make.
