Legit rumors on ECST

The news yesterday: « eBay plans to acquire Shopping.com in a $620 million cash transaction aimed at resuscitating the auction giant's slowing growth rate.

The acquisition, announced Wednesday, brings the Web's biggest comparison shopping engine under the hood of the largest auction site at a time when eBay has been struggling to maintain its growth in the face of increasing competition from Yahoo, Google and others.»

Profile for ECST:

«Ecost.Com, Inc.. The Company's principal activities are to operate a multi-category online discount retailer of new , close-out and refurbished brand-name merchandise. The Company offers over 100,000 products in seven merchandise categories, including computer hardware and software, home electronics, digital imaging, watches and jewelry, housewares, DVD movies, and video games.»

Chart for ECST:



Story to speculate:

Since EBAY bought SHOP, it may buy ECST too, or maybe some of the referred rivals (Yahoo, Google, etc) will do that. The stock is way below it's IPO price so I believe it is a takeover candidate. Yahoo and Google are biting and following EBAY, so it is possible.

Possible, but I'll not wait for the news (which may never come). I'll buy the stock if the gap isn't enormous and look to sell with a 20 or 30% profit in the next few days.

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