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Non-Tech : E*Trade (NYSE:ET)
ET 16.38+0.1%Dec 24 12:59 PM EST
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To: Thanh T. Phung who wrote (3349)7/21/1998 12:49:00 PM
From: Live&Learn  Read Replies (1) of 13953
 
The $50 rebate was simply EGRP's response to a competitor changing their price structure.

Some investors seem to have forgotten the context of the announcement. A few days earlier Fidelity (a large well known company) had changed it's price structure. More frequent traders would get a better commission and less frequent investors would pay more.

So competition is like tennis. When a large competitor like Fidelity hits the ball in your court all the heads turn and wait for your reaction (EGRP's and SCH's). SCH said it would do nothing; EGRP choose the rebate knowing that the news which was widely reported would blow over in a few weeks.

I believe this announcement came in early June. May was a terrible month for Exchange Volume. The move by EGRP was not a desperation move but simply a strategy to show active traders that their business was valued and that management was aware of the competitive climate and prepared to respond accordingly. ie. Don't jump ship.

On another note volume looks good at today's midpoint. We should close on better volume than yesterday. I won't go out on a limb and say that we will rally into the close but I do expect the company to please the investment community this quarter.
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