During the Great Depression, financially devastated Americans sold turnips along side the road to make ends meet. Today, they merely boot up their computer and sell their junk online.

For proof, I called up an acquaintance that makes her living buying and selling on eBay (NASDAQ:EBAY). She answered the phone sounding like she had just spent the last 48 hours on a runaway treadmill. She was tired and grumpy.

“So how did Cyber Monday treat you,” I asked.

“It was insane. I have more orders than I can handle,” I think she replied. In her tired and mumbling tone, it was hard to know exactly what she said.

I do know she cursed and hung up on me when I told her to hang on to her hat with Green Monday and its huge shopping volumes on the way. Experts are predicting it will be the biggest online retailing day of the year.

Mr. And Mrs. Clause go online

While my auction-dealing friend was overworked and tired, I am sure she is glad for the surge in eBay spending. In all, online retail spending was up by 15% or so on Cyber Monday, the closely monitored first day back to work after the Thanksgiving holiday.

While online retailers like Amazon (NASDAQ:AMZN), Gap (NYSE:GPS) and Best Buy (NYSE:BBY) raked in their share of the $846 million spent last Monday, the Web’s largest auction site saw its selling activity soar. EBay reported a 50% year-over-year increase, thanks to its fixed-price sales surging by over 125% from last year.

When the nation’s economy locks its brakes, one of the first places discount shoppers and money-hungry sellers head is eBay. The site’s foundation is built on allowing individual sellers to unload their unwanted “junk” for cash.

As tens of thousands of Americans hit the unemployment line, they are turning to eBay for a shot at some quick and easy cash. Financially desperate sellers will unload just about anything they can live without in order to pay their winter heating bills, mortgages, and, of course, their burgeoning Christmas debt.

Some more discount buying

Wall Street has hammered eBay’s valuation over the past twelve months. A year ago, shares were trading for nearly $35. Today, the few folks savvy enough to buy are getting their shares for just $13.

Unlike so many other companies trading on the major exchanges, eBay does not have any desperate liquidity issues. It does not have to beg to creditors to extend debt maturities. It will not be diluting shares with a last-ditch attempt to increase capitalization. And most importantly, it is in a position to increase its market depth through strategic acquisitions and in-house development.

I know a lot of folks do not like the company’s management. eBay’s CEO, John Donahoe, has made some controversial decisions and certainly plenty of mistakes, but a company with a significant cash cushion and a near-total lack of debt cannot be overlooked by value-minded investors.

This is one of those plays where you have to put emotions aside and look at the reality of the economic situation and the numbers the company is producing. If a bank or manufacturer could post a balance sheet like eBay’s, investors would be drooling to get in on the action.

The worst is behind eBay and its future looks bright. Take a look at the stock and see if it fits your portfolio. I am positive you will like what you see.

Source: eBay (NASDAQ:EBAY) takes advantage of online spending