Pre-earning strategy for Ebay
4-18-07: The recent appreciation of Ebay shares is a little concerning. Since we last wrote about Ebay, the stock has gone up about 3 points. Investors are betting the company will blow away their numbers when they report today. Hopefully this will happen, but to be cautious, we are selling half of our positions and locking in the recent gains. While we believed in the long prospect of Ebay, the stock could suffer a severe sell off if the company fails to exceed expectation. The stock appears to be price for perfection; any sign of negative tone will spark a sell off. Therefore, the prudent strategy would be to take some money off table before earnings is release.
We will provide the main points from the Ebay conference call and our analysis later today. Stay tuned and good luck to all Ebay shareholders.
