Silicon Investor (SI) -- The First Internet Community

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) -- Ignore unavailable to you. Want to Upgrade?

To: Spytrdr who wrote (9615)	12/1/1999 12:41:00 AM
From: Spytrdr	Read Replies (1) \| Respond to of 13953

read on Yahoo board... OLBs - EGRP and SCH - Part 1by: olbmaster 12/1/1999 12:00 am ESTMsg: 142254 of 142259 I worked for Schwab for 3 years. I just quit recently to join an internet startup. During those years I watched SCH price very closely and because of SCH I watched EGRP price very closely. I currently own significant holdings in both because these stocks have corrected for no reason whatsoever. This is a case of hysterical panic setting in amongst the Smith Barney and Merrill Lynchs of the world causing them to be cautious in upgrading these two stocks. The plain and simple fact is that if they do upgrade these stocks they will shoot up to 100 dollars a share - conservatively speaking hence becoming THE financial portals of the world. There is just too much RIGHT with these companies. It is silly for EGRP and SCH to be bashing each other. There is no doubt competition between the two but these two companies happen to have the best financial business models of any other financial companies out there. Be it banks, mortgage institutions, brokers, etc. Repeatedly they are delivering crushing blows to their competitors. They are so far ahead of the existing competition that it is almost ridiculous. I liken choosing business strategies to buying acres of land. EGRP and SCH happened to buy land with oil underneath.If EGRP is losing money one should realize that they are losing money because they are advertising a lot. They are definitely profitable purely from a commission and margin interest angle. That is they spend less on executing the trade than they charge and they make more money in margin interest than it takes for them to maintain their accounts.They have deduced that compared to the advertising dollars spent, the gains realized by acquiring new accounts and assets are much higher. So effectively they are making hay while the sun is shining.SCH is basically almost literally minting profits. This is an extremely high class organization which is superbly managed rightfrom the top by Chuck and Dave. Besidesthese two luminaries they have a bunch of super seasoned veterans of the industry in Gideon Sasson, Linnet Deily, John Coughlan, etc. This company also has an amazing ability of tightening their belts by freezing hiring and reducing expenditure when times seem shaky. It could and will be a 100 billion dollar company in less than 3 years. OLBs- EGRP and SCH - Part 2by: olbmaster 12/1/1999 12:00 am ESTMsg: 142255 of 142259 Here are some statements I read on some news on the OLBs:1.) SCH and EGRP are expensive compared to Merrill and Morgan Stanley. Whoever wrote this needs to basically quit sipping brandy and wake up! Yes they are expensive because they have the right business model. A business with more future potential is bound to be more expensive than otherwise.2.) SCH and EGRP are facing increased competition.Absolutely true. Competition is fierce in this sector. But, you know what - it is more difficult to keep your lead and truly distinguish yourself in a competitive field rather than a field which nobody cares about. SCH and EGRP and doing that by every financial matrix around. 3.) It is foolish to invest based on volumes.I am not sure whether this person was referring to investing in OLBs or just any stock. On both accounts I would challenge his statement as atleast being misguiding. I am going to assume that he was talking about investing in OLBs. I would venture to say that the first thing that you have to look at when you are buying an OLB IS trading volume. I read a book by Peter Lynch "One up on wall street" or something like that. There he is talking about going to a mall and looking for stores which are attracting the maximum customers as one of the things to do when you are planning to buy a retail oriented stocks. Looking at trading volumes and how a particular OLB is keeping up is exactly like that. OLBs buy and sell stocks after all!Some more talk on trading volumes. When Nasdaq trading volumes reached record levels in April SCH and EGRP shot up to record highs. In subsequent months when the trading volumes dropped, April levels were considered unsustainable and an anomaly and these two stocks corrected 60% and 50% percent as of today. But November - has completely blown away any doubts that April was an anomaly. I kept very close tabs on the daily volumes in November and by what is saw the top 9 heaviest volume trading days in history were in November and the 10th was October 29th. November numbers blow away April numbers by as many as 4,000,000,000 (15%) more shares traded and almost 30-40% more trades. If any company in any sector of the industry blows away ALL their numbers by as wide a margin as SCH and EGRP do in Q4 when results are announced in January, it would be a miracle. And I include the CSCOs, SUNWs and YHOOs and e-tailers of the world. I think that human beings by nature like doing things themselves as long as there are tools to do that in an effective manner. OLBs provide the tools to invest quickly and cheaply.Seemed like I was writing an essay. But I read this board a lot and felt like giving something back. And I am open to flames and corrections if you find any.