Investors should place a bid on
. So said Jim Cramer, as he called the online auctioneer a "classic turnaround situation," during his "Mad Money" segment on Tuesday.
Who cares if the users don't like the site experience? Just because CEO John Donahoe is disliked by the users doesn't mean the stock is bad, Cramer said.
Yes, the stock is down 40% since Donahoe took the reins in March 2008, trailing the S&P 500 which is down 28.8% during the same period. And rival Amazon is up 22% since March 2008. But Cramer says that's a unique situation and can't be used to judge eBay.
Donahoe has only been at the helm for a year, and already eBay has improved its shipping options, payment protection and product searching and lowered its insertion fees. Is it Donahoe's fault that he inherited a company that was falling apart at the seams?
And while these moves make eBay more like a big discounter than an online auctioneer -- which is bound to disappoint users -- it makes the company more money and is a plus for investors.
Cramer said eBay also holds $3.2 billion in cash, as well as great value in its PayPal, Skype and Stub Hub services, which are not showing up in the stock price. And the fact that 52% of the company's revenue comes from outside the U.S., makes it a solid bet on a global recovery.
Cramer says the charts are too complacent -- showing neither a drastic move up or down in eBay's stock -- and it's time to join the bidding, or you'll miss a big move.
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