Thursday, January 25, 2007

EBAY Rising

EBAY announced 24 percent profit growth. Don't go there - instead read Notable Calls and what you will find is that it's a lot of smoke and mirrors and much of their "profit" overshoot is a result of foreign exchange.

This is one of the problems with so many multinational companies - you really can't compare apples to apples when they announce their earnings because they make some portion of it on the spot market. And you don't know how much is from good business practices and great sales and how much is from Forex unless you read the prospectus. And even then you might not be able to tell.

Just watch your step in this one and others like it.

1 comment:


Ebay is to popular a stock for my tast.