E*Trade (NYSE:ET) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : E*Trade (NYSE:ET)

ET 16.80

0.0%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Spytrdr who wrote (11862)	2/19/2000 8:58:00 PM
From: BWAC	of 13953

Spytrdr, There has been a lot of general negative talk about all the money borrowed on margin. A little number play. Draw your own conclusions: AMTD 49 million margin revenue/.02 quarterly interest at 8% annual = 2.45 Billion margin Loans/31.6 Billion Customer Assets = 7.7%. So AMTD customers have 92.3% Equity. Not too bad a number. EGRP 77 million margin revenue/.02 = 3.85 Billion margin loans/44.1 Billion Customer Assets = 8.7% or 91.3% Equity. SCH 427 Million margin revenue/ .02 = 21.35 Billion margin loans/725 Billion Customer Assets = 3% or 97% Equity. So EGRP has the most agressive investors. AMTD is right there close behind. And as one would expect SCH has a more conservative type, although their % might be more a function of account size (108k average) and not as much need to borrow. One might also note that SCH had a net income of 170 Million last quarter. It could be said that it came almost entirely from the 220 Million NET INTEREST income. So for those not thinking clearly. Its all about attracting that certain critical mass level of assets and then having those assets borrowed against. To attract assets, you first have to attract customers. Advertising.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next