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eBay: Exposure To 2 Unique, Dominant Businesses With A Spin-Off To Boot

I became interested in eBay (EBAY) late last year after reading Joel Greenblatt's "You Can be a Stock Market Genius," which is an excellent book about special situation investing. In his book, Greenblatt provides examples of how he obtained market-trouncing returns by investing in spin-offs. I wanted in, so I ran a screen looking for such opportunities and eBay popped up.

After doing some initial research and noticing that eBay was one of Seth Klarman's top holdings, I found it worthwhile to dig deeper. eBay is comprised of 3 businesses: Marketplaces (47% of 2014 revenues), which allows individuals and businesses to sell products to customers through online platforms; PayPal (44% of 2014 revenues), which allows individuals and businesses to send money to each other digitally; and Enterprise (9% of 2014 revenues), which provides marketing, order fulfillment and e-commerce services to retailers. Pressure by activist investor Carl Icahn has led eBay's… Read More …