No, no, no. ToysRUs made a perfectly logical decison that most any business would do and Google tanked them for it. ToysRUs wanted the url to direct to their site.  They're all about toys and they simply bought a url that described their business and told the url where to take people.  Google tanked them in the rankings because came with link juice. Google assumed that was doing this to manipulate the search engines but there is just, to my knowledge, ZERO evidence of this.  This is another case of Google caring more about the possible spam threat than the actual rankings for searchers.

Most popular auctions with expiring domains are at godaddy, namejet, snapnames. Search for expired domains name its very easy if you have domains list. With a bit luck, you can drop good one with PR5 cheaper like $200, just need to know which domain have not fake pr. List of domains are not free, but updated dailly with aprox. 50.000 new expiring domain names.
There’s an important distinction to make here between domain flipping and website flipping. The latter mainly refers to buying and selling full websites. By full websites, I mean websites that actually have content and more often than not have traffic and revenue. When buying and selling websites, the domain name matters less as the main value there is the content, traffic, revenue, history/reputation, sustainability and growth opportunities. The same can’t be said for domain names where you’re just selling “the name” and hence it’s all that really matters.