Friday, January 21, 2005

Got To Love Wall Street

Those of us who join together once a week to write about an investment idea got Ebay exactly right. Most of us told you to stay away. You can see the proof here.

Let's see how Wall Street handled EBay:

January 20th, 2005 Deutsche Securities: Downgrade
January 20th, 2005 Piper Jaffray: Downgrade
January 20th, 2005 Friedman Billings: Downgrade
January 20th, 2005 AmTech Research: Downgrade
January 20th, 2005 Marquis Investment Research: Downgrade
January 20th, 2005 Caris and Company: Downgrade

A little late guys!

Here is an excerpt from the downgrade given by Marquis Investment Research, "The lower-than-expected guidance coupled with the increase in fees is likely a harbinger of bad things to come. This is certainly the main reason for our downgrade."

Yeah right, and I'm having dinner with Saddam and his lover Osama (It's true...I read it in the Enquirer). I'm sure the downgrades had nothing to do with eBay's stock dropping over 19% on January 20th. Wall Street telling the investing public that eBay might not be as good as they once thought after eBay loses 19% of its per share value, does nothing for the investor. But what do they care? They've already received their huge bonuses for the year.

P.S. The downgrade from Marquis Investment Research is especially humorous since they just upgraded eBay to a buy on January 6th, 2005. Could that much really change in 14 days?

P.P.S. It's not all bad. Legg Mason recently upgraded eBay to a Buy from a Hold on the 21st of January. At least that is a little more reasonable.

Best Regards,

The Soothsayer of Omaha


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