eBay p/e 11??

Fairly highly leveraged, lots of competition, but still: could eBay be a ripe target?

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Not even customary OT?

Not highly leveraged. Their cash and debt are about same. They have managed to aggressively buyback shares over 450 million in the last 5 years without taking additional debt.

could eBay be a ripe target?

Or as a single stock purchase, of course.

It does seem attractively priced, especially relative to some of the other opportunities out there.

Expectations for next year’s net seem to be around $4.00-4.40, today’s price 9.7 to 10.7 times that.
It’s not a fast growing business, but it sure has a moat and makes money.
It seems reasonable to expecting rising earnings per share in real terms, meaning a buyer would be living with an earnings yield in double digits.
That doesn’t usually work out badly for non-dying businesses. And heck, it even pays a dividend over 2%.

They seem to be making the best of a combination of big cash generation and a low stock price: lots of buybacks.

Might be as boring as watching paint dry, but it probably fits Rule #1.
Too bad GMV isn’t rising.

Jim

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If mentioning with respect to ebay “…it sure has a moat” I think PayPal and Meta are worth mentioning along the same lines (and Amazon too). Fallen Angels, yes, but as someone said there is a price for everything, and theirs might actually be highly attractive ones now.

There is more to our digital world than Google. Even those like Cloudflare/Crowdstrike/Datadog which are more and more becoming essentials - though I have no idea what their “there is a price for everything” price might be.

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Not even customary OT?

No, because in view of recent postings about Munger’s focus on Alibaba, it occurred to me that there may be a better target closer to home.

In any event, now that you’ve gotten that snipe out of your system, do you agree or disagree?

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now that you’ve gotten that snipe out of your system

You flatter yourself…

I think it is still preferable to use OT. As far as BABA is concerned, it is honorary Berkshire holding even thought they don’t own it, but Munger owns it. Don’t ask me how is it so, that’s the way it goes here.

If there is no growth, why bother? You can trade, buy and write calls forever to generate slightly excess return, etc. For Berkshire it makes no sense. Also, EBAY is way out of their league to own the entire company.

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You flatter yourself…

I’m sorry I asked. Won’t make that mistake again. Pretty soon, you’ll be talking exclusively to yourself. Adios

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I’m sorry I asked. Won’t make that mistake again. Pretty soon, you’ll be talking exclusively to yourself. Adios

Look at your ego. You cannot take a simple suggestion to use OT. You can swing at me for that, but a gentle pushback you cannot take it.

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