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

To: Spytrdr who wrote (10294)	12/30/1999 1:05:00 AM
From: desert fox	Read Replies (1) \| Respond to of 13953

It's good to see there is not a lot of CC and management bashing on this thread like there is among the other threads like Clearstation and Yahoo. There are lots of uninformed as well as unintelligent investors over there who profess to be long on the stock but keep griping about how they keep losing money on it as they have bought into it during its runup to it's highs. Many of them don't understand where ETrade is headed or don't want to wait. Some points to ponder. 1) ETrade management is doing a super job: - they forked over the money last year in advertising to promote Destination ETrade when many analysts and online brokerages scoffed at them. Management scores an A+++ on foresight. Now everyone including Schwab and Merill is forking over the big bucks to do the same. 2) The Merills and others still don't get it. Does anyone remember the Upside interview with CC earlier this year. He was so suprised that all the big boys even allowed ETrade to survive in it's early stages when it would have been so easy to crush them back in 1997 and early 1998. Too late. They just didn't have the vision. They still don't. They should have stopped ETrade long ago. Now they are playing catch up. For those that think CC is not a visionary, one would only have to see where he took ETrade from to what it is now and what it will become. End of story. 3) Last quarter, SCH and ETrade took in over 50% of all online accounts. For those that read the Robertson Stephens research report, you know what I'm talking about. And if I remember correctly, ETrade was quickly overtaking SCH in accounts and soon transactions per day. With SCH reporting over 6500 accounts started a day, I can safely bet that EGRP is doing the same if not better. I'm even thinking they may even get 500,000 accounts this quarter and I'm sure well over 400,000. This trend will continue and for those concerned that ETrade is spending too much on advertising? At this point in the game, ETrade can now do real time (day by day) trend analysis and see where their direction is going. They can easily see if their account growth momentum is increasing. If they are spending more on advertising, it's because it works and works real well. If account acquistion costs go up, then that's a different story. 3)Account size per customer last quarter was $18,000(?) I'm not too worried about that even with the dilution from the near 500,000 accounts acquired this quarter. I expect the number to go up substantially. Reason is that the Nasdaq has gone up around 50% since last quarter. And if the ETrade customer is heavily weighted in the Nasdaq, then we should see a lot of that reflected in the account values. Internet stocks??? Lot's of ETrade members have em. 4) With the exception of assets gathered, ETrade should significantly show that it is catching up to Schwab, it's only real competition at this point. With the Market continuing to make new highs, however, a coming correction(it always happens) in the techonology sector may take it's toll on ETrade also. 5) E*Trade will be a 100 Billion dollar company some day. It may just take 10 years but 5 would be better. $400/share. Sure. What it does in the meantime doesn't matter for true longs. df