E*Trade has gone down like the other internet stocks, but it's case is quite different. Unlike the other major internet stocks(Yhoo, amazon, CMGI, etc), it has languished for the past 2 years. Last 3 months it has shot up for good reason. Anyways, I'm banking on E*Trade because they have "shown me the money"
Just think, one year from now, they will have well over a million accounts. I'm thinking that they will have 1.5 million accounts by this time next year from self directed investors. I know that Schwab has over 2 million online accounts right now but most of them are converts from their current accounts. E*Trade has no peer in account acquistions from the pool of 10-12 million self directed investors that don't have online accounts yet. Watch out, two years from now, E*Trade could truly be a monster. Advertising spending could very well increase and it should but as a percentage of overall revenues(it will go down)
That is what I've been doing, Looking two years into the future when I buy this stock. I could say that I bought this stock at 12, 20's, 80's, and 90's but it doesn't matter at this point now. Everyone should decide at what point they are comfortable at accumulating this stock. Even now in the 60's to 80's I have been accumulating.
Everyone compares this thing to AOL but I like to compare it to Cisco of the early 90's. The market leader that took the lead in new technologies, innovations, and created markets for itself where none existed before.
Make mine E*Trade.
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