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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Jim who wrote (9453)	11/18/1999 9:26:00 AM
From: Diamond Jim	Respond to of 13953

To gain access to IPO shares and better profit from the surge in online investment activity Ameritrade (Nasdaq: AMTD), Charles Schwab (NYSE: SCH) and TD Waterhouse (NYSE: TWE) announced they were forming an online investment bank with three major venture capital firms. Together, Schwab, T,D. Waterhouse, and Ameritrade account for 50 percent of all online trading accounts. As this recent announcement suggests, the winner of the e-broker game will be decided by adding financials services, better IPO distribution and acquiring customer assets to smooth out the ups and downs. A multi-service, varied-product, easy-use platform will be crucial in achieving these goals and increasing revenues. TD Waterhouse has more than 2 million customers who can trade stock and mutual funds via telephone and the Internet. The company is expanding its online operations and offering more financial services. Although online trading accounts for most of its trades, the company is adding to its branch network which already includes 200 offices in Australia, Canada, Hong Kong, the UK, and the US. The US accounts for nearly 70% of sales. For the last two quarters TD Waterhouse has had the lowest account acquisition cost of $105 per new account and has been able to grow 2-3 times the rate of Schwab, creating better value for the shareholders. Still, TWE is trading at a big discount to Schwab in terms of market value per account, which is $1,239 versus $5,290 for Schwab. This discount creates a great opportunity. TD Waterhouse's Web site offers an investor education center and a long overdue redesigned home page. Customer service is 24x7, knowledgeable, and helpful. Still, the site leaves investors wanting. TD Waterhouse also lacks robust financial and tax planning tools. The company's growth will depend in part on their strategy of providing other online financial services, including banking, consumer credit, home mortgage brokerage services, insurance and merchandise payment. And there are risks. Volume declines, increased competition, and greater scrutiny from regulators are just a few. Look for a near term pullback after the recent run-up. Nevertheless, if TWE can continue adding value with more strategic partnerships, increased product offerings, and heightened brand awareness the company will benefit with the rising tide of the market and its volume, lifting them to new all-time highs.