Buy: EBAY

This article encapsulates some of the reasons to buy Ebay, which I did recently at $31.

In addition to the Forbes logic, consider:

-Skype is looking like a money maker. My decision to buy coincided with reading that they're at something like $.01 in revenue per user. I see no reason why that figure can't grow. (I'm one of the $29.95 USA plan users, and expect many more to join.)

-Ebay has no strong rival in any of it's markets (online auctions, online payments, etc.)

-while critics say that online auction growth is decelerating, Ebay has adeptly bought add-ons to this core business (like StubHub) to keep the growth going.

-Ebay's economic model is still the best on the planet. As growth continues, margins INCREASE, as the marginal cost of hosting more auctions is basically a fraction of a server and connectivity - no new people, nor software costs, nor shipping costs.

-Along the same lines, you can think of Ebay as not being an auction-specialist, but rather a specialist in infinitely scalable, low marginal cost businesses.

-Ebay's management team, and especially CEO Meg Whitman, are now 'net veterans and I think, for having managed Ebay thru the good times and the bad, can now be acknowledged as the cream of the crop of internet business managers. (It won't surprise me if Ebay will (or has already) become to Internet business like P & G is to marketing- the place where great managers come from.)