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Thursday, February 13, 2014

Trades - $aet $ebay

Interesting setups have emerged for AET and EBAY (although, fundamentally, i debate the ebay trade). 

AET prime for an oversold bounce. In 2013, its multiple came in line to its 10year average. So a trailing PE between 12-14 is realistic, despite the lack of eps growth. Looking for a flush near 64.

Ebay's seemingly inability to grow the retail ops as well as Amazon has me a bit concerned, along with their inability to beat the last few quarterly reports. Makes an investor question why the market allows for the elavated multiple. Despite the fundamental concern, technically, the setup is interesting. If it can push to 52, near the 20sma, the trade is to play the pop. IMO, the only thing that gets ebay to have a leg higher from here is if they execute their 'virtual mall' (designed to unify the enterprise offering and better compete with Amazon) well. Looking to cautiously and actively trade around the 20sma.

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