Volatility Index S&P 500 Options-VIX up 0.24 to 13.53

Advanced Micro Devices Inc. (NYSE:AMD) calls (quoted in Pennies) busy on chatter of private equity cash infusion. AMD is recently up $0.46 to $13.87. AMD has been frequently subject to LBO chatter; today chatter is circulating that a friendly private equity-strategic partner could surface to make cash infusion. Speculation is that AMD could announce a deal similar to the deal Sun Microsystems Inc. (NASDAQ:SUNW) announced on 1/23/07, when it received a $700 million dollar private placement from KKR. AMD call option volume of 73,560 contracts compares to put volume of 9,747 contracts. AMD April option implied volatility of 41 is below its 26-week average of 45 according to Track Data, suggesting decreasing price risks.

eBay Inc. (NASDAQ:EBAY) implied volatility is low. Meg Whitman enters ninth-year working as eBay CEO. EBAY is recently up $0.23 to $31.72. Meg Whitman has an estimated net worth of $1.2 billion according to Forbes, much of it in EBAY stock. Years ago, Whitman said she would leave EBAY after eight to ten years. Whitman joined EBAY in 1998. EBAY has a market cap of $43 billion. Microsoft Corp. (NASDAQ:MSFT) has a market cap of $270 billion. EBAY overall option implied volatility of 34 is below its 26-week average of 37 according to Track Data, indicating decreasing risks.

Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Daily option update - March 21, 2007 originally appeared on BloggingStocks on Wed, 21 Mar 2007 13:16:00 EST. Please see our terms for use of feeds.

Cramer and eBay? Together at last. originally appeared on BloggingStocks on Thu, 07 Dec 2006 18:34:00 EST. Please see our terms for use of feeds.

Back in August, I suggested that we should perhaps start looking at eBay differently. It is a mature company, I argued, and hence would probably require different valuation methods, lower multiples, etc. At the same time, I noted, the market has a tendency to get there naturally.

Today, Fortune ran a fascinating article about eBay Inc. (NASDAQ: EBAY), the issues it is facing and its management team. The article naturally focuses on eBay's CEO, Meg Whitman, and on eBay's new president of its marketplaces business, John Donahoe, believed to be Whitman's successor.

eBay's share price has been halved from its December 2004 high of $59, as investors are concerned mostly with the slowing growth rates. While growth rates have been most concerning in eBay's core auction business, the Skype acquisition is also a focus, especially as the promised synergies haven't materialized yet. There is also the fierce competition in Asia, and let's not forget, several key people leaving.

Many note, quite accurately too, that eBay is a highly profitable company with enviable operating margins and still high growth. But most, even eBay's management, realize that the company is changing as it is entering the "grownup" realm of large and mature corporations, where size and age could potentially drag it down.

Continue reading Building eBay 2.0: Whitman and Donahoe on eBay's future

Building eBay 2.0: Whitman and Donahoe on eBay's future originally appeared on BloggingStocks on Wed, 04 Oct 2006 12:10:00 EST. Please see our terms for use of feeds.

A few months ago, I started wondering about eBay's chief executive, Meg Whitman. It occurred to me that her tenure was growing old, and I speculated about whether she might step down in the next 12-18 months.

Today, I'm even more concerned about eBay's management team. The company has been rapidly losing all the bright stars who shone in my investing galaxy when I first decided to buy eBay back in 2000. Forbes has an illuminating look at the brain drain at PayPal, recently capped off by news that Jeff Jordan would be stepping down "for family reasons." Jordan, an executive that I met a few years before he took over as CEO of PayPal, is a charismatic, slick, management consultant type: in short, exactly the sort of person Meg has always preferred. As she said in her statement regarding his departure, Jordan is a friend.

Jeff Jordan's not the only friend Meg Whitman has lost. Maynard Webb, her longtime friend and eBay COO, retires next month, as I noted earlier. It's hard to say whether the other PayPal execs mentioned in the Forbes article had time to become friendly with Meg, but it's certain that their departure can't be a good thing. Instead of infusing life into eBay, they're out setting trends and making news at companies like YouTube (Chad Hurley), Slide (Max Levchin) and LinkedIn (Reid Hoffman), or directing oodles of money at hedge funds and venture capital firms.

Continue reading PayPal's brain drain: is it a signal of bigger problems at eBay?

PayPal's brain drain: is it a signal of bigger problems at eBay? originally appeared on BloggingStocks on Thu, 13 Jul 2006 19:05:00 EST. Please see our terms for use of feeds.

Meg Whitman swung the massive club of her one million-plus eBay membership today, calling on each of them individually to get involved in the net neutrality debate in a personally-addressed email. She argued against the doctrine of "pay to play" to use the "fast lane" of the internet and said, "The bottom tier -- the slow lane -- would be what is left for everyone else. If the fast lane is the information 'super-highway,' the slow lane will operate more like a dirt road." Her missive asked each member to follow a link to send an email to their congressperson.

The debate, which pitches the internet backbone providers (like Comcast, Verizon and Time Warner's cable unit) against the biggest bandwidth users (like eBay, Google, Amazon.com, Microsoft and Yahoo!) is growing more bitter by the minute. Whitman's atypical move of sending email to her many members is seen as an unconventional approach in a battle that, to date, has failed to explain itself well to voters; although investors, certainly, can understand that the potential for huge profits hang in the balance.

eBay diving into net neutrality: the million-member email originally appeared on BloggingStocks on Fri, 02 Jun 2006 18:43:00 EST. Please see our terms for use of feeds.

Continue reading Would Warren Buffett buy 50% of eBay, offer Meg CEO role?

Would Warren Buffett buy 50% of eBay, offer Meg CEO role? originally appeared on BloggingStocks on Mon, 08 May 2006 16:44:00 EST. Please see our terms for use of feeds.

Continue reading eBay after the bell 05-04-06: Meg promises much, investors unimpressed

eBay after the bell 05-04-06: Meg promises much, investors unimpressed originally appeared on BloggingStocks on Thu, 04 May 2006 19:33:00 EST. Please see our terms for use of feeds.