ECST

[David Randolph]

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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[David Randolph]

ECST

[bob839usa]

 ???I am confused.  I read your early posts and figured you meant: GEMS,TWTC,VRTX. ? then got the email and it was ECST,ECIL,LRLSQ.  HELP?/   

[David Randolph]

... check the dates of the posts and the homepage where we have our current holdings.

The mail you received was the one with the 3 Stocks on Fire for today. The other posts were just updates to stocks I already own.

[eliteG]

David, I am there with you on ECST...great chart and rumor, lets rock! 

[Irishman]

I'm in @4.18. No way  pass on this one. It's too logical, but then when was Wall Street ever logical. Anyway, I think we have a winner here.

[toaster808]

hi all,

i'm a recent member and am looking to get in on ecst.  what are the stop & target levels for this?  is there a general rule that applies to other recommendations?

thanks alot.

[saffeysite1]

I don't know about runor,but the article was in this mornings Wall Street Journal about E-bay purchasing  it.

[bob839usa]

Thank you David  guess I thought I would get the jump on the email  Didnt work

[David Randolph]

... considering ECST I want to see it closing above $4 today. If the stock holds all day long, considering volume at this hour, I'm expecting 30% profit in the next few days.

But, as always, I've only invested about 6.66% of global portfolio in ECST.

You're welcome !

[toaster808]

thanks for the reply david.

[Athakinu]

Hi there.
I was wondering what is your prediction on ECST today. It closed under 4 so do you think it will recover or sink deeper.
Thanks.
A Thakinu

[David Randolph]

... I should have been more accurate and say $3.97. Here's why: ECST has a resistance at $3.97 because that was the last low on the stock as you can see in the chart below.

The stock closed at resistance with high volume, after trading above it on the intraday. I'm going to give it a second chance and wait to see what happens today - pass trough resistance or fail. If it fails I'll sell without a second thought near the close. If the rumor has enough power to go clearly above $4 I'll keep it.

The market has total control of my behavior now. I put it in his hands.

[Athakinu]

Ok.
Thanks.

[David Randolph]

The stock failed, I failed, take the loss and forget about it, normal business activity.