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Non-Tech : E*Trade (NYSE:ET)
ET 16.36+0.3%3:59 PM EST

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To: desert fox who wrote (9968)12/19/1999 1:48:00 AM
From: ecommerceman  Read Replies (3) of 13953
 
Desert Fox--Excellent post. While I am ridiculously long E*Trade, I'm not unaware of the costs of their promotions/rebates. Without doubt the $5 trade option will dramatically increase E*Trade's reported trade volume, but whether or not that will either add or subtract from the bottom line is anybody's guess. Clearly, it's E*Trade's belief that this promotion (and others) will utlimately add to the bottom line, but I for one certainly don't believe that it's a given certainly in the short term, and perhaps not even in the long term.

As a long, I'm betting that these moves will advance the agenda of the company, but I'm also willing to admit that there's a certain element of blind-faith that is involved here, and I wouldn't be honest if I didn't say that there is a fair amount of risk...
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