Is it Time to Buy eBay Options?

Publication: Business Week
Publication title: "eBay's Rhine Gold"
Publication date: 3/27/2006

Brief Summary:

This article takes a bullish look at on-line auction giant eBay (EBAY: sentiment, chart, options) and its success in . The sub-title really sums up the article "Thousands of German startups are using the auction site to sell goods". Germans bought over $6 billion in merchandise on EBAY in 2004 and over 64,000 sellers earn at least 25 percent of their total income via the auction site by selling anything they can. Add it up and is eBay's second largest market behind the . The success in could lead to similar numbers in , , and elsewhere throughout Europe . The Government in is helping matters also, making it very easy for anyone with broadband and shipping software to begin selling, as the German post office is now offering services tailored to small e-commerce operations.

Contrarian Takeaway:

This article definitely paints a bullish picture for EBAY as and other European countries represent a huge opportunity for continued growth. The only problem I see is that we have a pretty optimistic article, yet EBAY has been a serious laggard so far this year. In fact, the shares are down over nine-percent year-to-date, while other top-rated stocks have been breaking out to new highs along with the market. Obviously this optimism towards underperformance isn't a good sign, and it could signal more underperformance to come. Looking at the quantitative sentiment reveals some more optimism. First off, the firm's SOIR checks in at only 0.47, higher than only four percent of the readings over the past year. This shows us that short-term option players continue to remain bullish even as the shares lag. Next, it would take fewer than four days for all of the shorts to cover their bearish bets - not a huge number, but also not enough to get me overly concerned about a massive short-covering rally on any potential good news. Finally, analysts are more neutral if not a little bearish, as according to Zacks there are eight "buys", eight "holds," and two "sells." Add it up and eBay sports a Schaeffer's Equity Scorecard reading of 3.0 out of 10.0 suggesting the path of least resistance is probably lower. If you're looking for an internet name to play long I'd recommend something like F5 Networks (FFIV: sentiment, chart, options) which better fits our methodology - skepticism towards a fundamental and technical leader.

Feb 2006

A small diamond discovered in Northern British Columbia , , has opened up speculation over whether mining is possible there.

already produces about 14 per cent of the world's diamonds but, until now, prospectors have focused all of their attention on other provinces and territories—mainly the Northwest Territories .

However, a new government report says that Northeast British Columbia has the indicator minerals that are present in kimberlite, the rocks that yield diamonds.

Experts were not surprised about the possibility — noting that indicator minerals were also being found in Ontario, Quebec and Saskatchewan .

But diamonds may not be the only gemstone found there: Minister of State for Mining Bill Bennett has released a report suggesting emeralds may also be found there.

March 9,2006

Houston Business Journal - 11:19 AM CST Monday

Houston contractor Willbros Group Inc. said Sunday it has removed all of its workers from an offshore project in Nigeria where nine workers were taken hostage Saturday by Nigerian militants.

Wednesday February 22, 8:30 am ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 22, 2006--Skygold Ventures Ltd. (TSX VENTURE:SKV - News) and Wildrose Resources Ltd. (TSX VENTURE:WRS - News) are pleased to announce that results have now been received for all of the remaining 2005 drill holes on the Spanish Mountain property, in central British Columbia. Results to date continue to intersect and expand significant gold mineralization within the Main Zone. In addition, gold mineralization intersected in reconnaissance drilling up to 500 metres west of the Main Zone highlights the potential for large-scale expansion of the known zone.

NEW YORK, Feb 24 (Reuters) - U.S. gold futures surged almost 1 percent early Friday on speculative buying on reports of attempted bombings at a Saudi Arabia oil plant and news that U.S. durable goods orders plunged in January, dealers said.

SAINT PAUL, Minn., Feb. 20 /PRNewswire-FirstCall/ -- Image Sensing Systems, Inc. (ISS) ISNS announced today that its net income for 2005 was a $2,841,000 or $.79 per share ($.73 per diluted share) versus net income of $2,694,000 or $.79 per share ($.71 per diluted share) for 2004. Net income for the fourth quarter was $689,000 or $.19 per share ($.18 per diluted share), versus net income of $418,000 or $.12 per share ($.11 per diluted share) for the comparable period in 2004. The fourth quarter of 2005 marks the fifteenth consecutive quarter of profitability for the company.

DynTek Announces Recapitalization Plan

IRVINE, Calif., Feb. 21 /PRNewswire-FirstCall/ -- DynTek, Inc. (OTC Bulletin Board: DYTK), a leading provider of professional technology services, today announced a recapitalization plan that is expected to bring the company more favorable debt terms and up to $7 million in net working capital.