Memo for the Analyst Derek Brown of Cantor Fitzgerald who is CLUELESS.

Ebay is a Buy Buy Buy and here is why:

Perhaps I am biased as well because I own ebay stock. I bought Ebay in November because of my own personal following story:

Seeing the reports that they sold 28,000 ps3 preorders BEFORE the launch date at an approximate average price of $2,400 and over 15,000 ps3s after launch at an approximate average price of $1,200 ebay must be making a killing on listing fees and reserve price fees. This does not include Wiis and Christmas is not even here yet.

I was not allowed to sell my PS3 or Wii presale ("ebay's NEW counterfiet/scam policy" that only allowed members with 50 + feedback to sell ONE preorder by taking a picture of their reciept). I have been a member for over a year and a half with a %100 feed back with 26 feedbacks. Being denied the ability to sell my preorder cost me 1,200 dollars at least. (I am waiting for some lawyer to start a class action lawsuit and I will gladly sign my name.)

So being denied I tried a one day auction which ended on 11.18.06 at 11 AM EST. My reserve was $1200 and the PS3 came with a game. Everyone is in bed on Saturday morning so this was foolish of me to end the auction at that time as the supply of PS3 units was great (over 40 a minute) and the demand at 11 AM on a saturday morning was low. I only had 3 watchers and my final bid was $900.01. So I ate the reserve and listing fees.

I waited till 9:30 PM EST 11.18.06 to relist as a one day auction with FREE shipping this time. The reserve was still at $1200. I ended up having 12 watchers and the final bid was $1100. Again the unit did not sell and I ate the reserve fees and the listing fees.

I lowered my reserve to $1000 for the 3rd ebay auction. The high bid was $920 and again I did not sell the PS3 and I ate the reserve fees and listing fees.

All told I lost $50.6 to ebay and the PS3 did not even sell. Imagine how many other people had similar experiences thinking that they were going to make a good profit on selling the PS3.

This does not include those who successfully sold and used PAYPAL which takes another cut of about $30-$40 dollars.

The same exact thing happened when I went to sell my Wii preorder with Zelda game.
My reserve was not met and the Wii did not sell. So again Ebay got more money from me. That is what happens because they are a business and I am using their service.

What does all this mean if you are still reading it? Ebay is going to make an absolute killing this quarter. Listings are up for the holidays and more people are using PayPal to make online purchases. Feel free to use this analysis on Mad Money Jim Cramer.

I repeat myself: (incase you missed it)
What does all this mean if you are still reading it? Ebay is going to make an absolute killing this quarter. Listings are up for the holidays and more people are using PayPal to make online purchases. Feel free to use this analysis on Mad Money Jim Cramer.

By the way, I have never heard of Cantor Fitzgerald, Analyst Derek Brown... but I have heard of Prudential

NEW YORK, November 21 (newratings.com) - Analyst Mark J. Rowen of Prudential Financial maintains his "overweight" rating on eBay Inc (EBAY.NAS). The target price is set to $40.

http://www.newratings.com/analyst_news/article_1426946.html

P.S. : What happened to the PS3 and the Wii you might ask? Sold the PS3 on Craigs list and met someone from ebay to sell the Wii (both outside of Ebay). But Ebay still got my business and I paid their fees.

http://madmoneyoncnbc.blogspot.com/2006/12/memo-for-analyst-derek-brown-of-cantor.html