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5 (New) Buys, and 5 ‘Deletions’ to the 2014 Stock Buy List

Here are my reasons for those 2014 buy and sell decisions

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In less than 20 years, eBay (EBAY) has grown to become the largest marketplace in the world. It’s a truly phenomenal business. The online auction house will generate revenue of $16 billion this year. I’m not a pure value investor and I think there are times where it’s worthwhile to pay a premium for growth; eBay is a good example (Cognizant (CTSH) is another).

Wall Street expects eBay to earn $3.14 per share next year, which means the stock is going for about 17 times earnings. That’s above the market, but it’s not a gigantic premium. I like the current valuation. eBay’s revenues will rise about 15% this year, and the Street sees another 14% increase next year. Bottom line: You’re getting a strong brand for a good price.

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