Why I like E*Trade.
A lot of the folks on the Yahoo threads bash E*Trade for paying too much for Telebanc. Heck even a lot of the analysts also do and a lot of them still say that it will cost E*Trade 1.8 Billion just to buy TBFC, hence, too much. All these folks are so short sighted. A lot of them say that E*Trade is also worth under $10 a share while at the same time saying they over paid for TBFC. They don't know what they are talking about. E*Trade is actually buying TBFC with 16 % of E* Trade. So, if E*Trade were at say $10 which equates to about ~2.2 Billion Market Cap, these folks should also admit that if E*Trade were worth that much, they would only be paying $340 million for TBFC. Right, so does that mean E*Trade is getting them cheap. Anyways, nobody should assign a market value to what E*Trade is getting TBFC and say they are paying too much. They should pose the question as to whether paying 16% of E*Trade is too much. Anyways, I think E*Trade and TBFC is a great deal.
- 1 Billion in cash together
- cross selling opportunities
- save on advertising for one company vice 2
- 18 % of Archipelago. When they go public, huge value for EGRP
- 28 % of E*Offering. How much will this be worth when they go public?
- Minority interest in Knight-Trimark, Eloan, and others
- Over 2 Million paying customers by years end
DF |
