4 top stocks that are suddenly real cheap
Dorfman's take: EBay Inc., the online auction firm located in San Jose, California, is trading for less than $20, down from about $27 three months ago. In recent years, it has lost market share to Amazon.com in online retailing, but still is growing strongly.
The company has become the leading retailer in mobile commerce, in which people order merchandise using Blackberry, iPhone, Droid or similar smartphones, Colin Gillis, a New York-based analyst at BGC Partners LP told Bloomberg News last week.
EBay's 2009 revenue of $8.7 billion and earnings of almost $2.4 billion were both records. Sales and earnings were more than double their 2004 levels, when the shares traded at more than $50. The company is debt-free and the stock sells for 13 times earnings. Pounce.