E*TRADE The good and the bad Message Board

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Non-Tech : E*TRADE The good and the bad

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To: Tracker who wrote ()	12/26/1997 8:46:00 PM
From: AlienTech	of 199

EGRP mostly bad.. Some good news though :) Even their stock buy back announcement hasent stopped the mighty fall.. Maybe it will end up in the penny stocks group! ETRADE GROUP (EGRP) 19 1/2 -1/2. The market has not been kind to ETrade shares over the past three months. As we noted in a Nov 11 story, shares of this online broker should not be considered a value simply because they had tumbled 44% from their 52-week high. With the shares now 59% below the one-year peak, the price of EGRP shares may now fully reflect the potential downside related to expected market share losses and declining revenues from the reduced trading activity by its customers. At $19.50 the stock carries a multiple of only 30, based on the current forecast for '98 earnings of $0.65 a share. Of course, given the aforementioned issues E*Trade is facing at this time (not to mention the overall drop in trading volume that would result from further fallout from Asia), we would expect both earnings estimates and the expected long-term growth rate of 50% to be cut back some. At this point, everyone (including analysts) is sitting tight in anticipation of the next earnings report, which is scheduled to come around Jan. 20. At that time we will see just how much market share the company has lost to the likes of SureTrade and Ameritrade. More important, the improved visibility that the report will provide will likely help establish a near-term bottom for the stock. Until that time, it probably would not be wise to aggressively accumulate EGRP shares, unless, of course, you are maybe making a play on a dead-cat bounce or an early-January rally in techs.

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