Sold a portion of our eBay (EBAY) position today.
While I feel that eBay is still a very strong business with good potential going forward I think that the current price to earnings to growth is getting high at this point (PEG 1.6).
However, I don’t feel it’s high enough to sell my whole position, as I believe that eBay still has some good growth surprises in store, especially with it’s Paypal business. However, there are uncertainties with the eBay.com business due to the mounting competition from Amazon, Google and traditional stores that will be a continual source of pressure on them.
Therefore, I am keeping my core position, but any future amounts I will want to get a good discount to help reduce the risk. I will need to determine at what price I would like accumulate more shares again.