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 (11862)	2/19/2000 7:40:00 PM
From: BWAC	Read Replies (2) \| Respond to of 13953

Now why is it that everybody wants an online bank? Saturday February 19, 6:27 pm Eastern Time Goldman Sachs plans European online bank - paper LONDON, Feb 19 (Reuters) - U.S. investment bank Goldman Sachs (NYSE:GS - news) is in talks with Californian internet incubator fund Idealab over launching a Europe-wide online bank, The Sunday Times reported. The newspaper said the two firms estimate the venture will need millions of pounds to get started but believe the market is still wide open and attractive to investors. Goldman and Idealab paired up last month to invest $23 million for a one-third stake in PayPal.com -- a private firm that provides electronic cash payments through e-mails. biz.yahoo.com

To: Spytrdr who wrote (11862)	2/19/2000 8:58:00 PM
From: BWAC	Respond to of 13953

Spytrdr, There has been a lot of general negative talk about all the money borrowed on margin. A little number play. Draw your own conclusions: AMTD 49 million margin revenue/.02 quarterly interest at 8% annual = 2.45 Billion margin Loans/31.6 Billion Customer Assets = 7.7%. So AMTD customers have 92.3% Equity. Not too bad a number. EGRP 77 million margin revenue/.02 = 3.85 Billion margin loans/44.1 Billion Customer Assets = 8.7% or 91.3% Equity. SCH 427 Million margin revenue/ .02 = 21.35 Billion margin loans/725 Billion Customer Assets = 3% or 97% Equity. So EGRP has the most agressive investors. AMTD is right there close behind. And as one would expect SCH has a more conservative type, although their % might be more a function of account size (108k average) and not as much need to borrow. One might also note that SCH had a net income of 170 Million last quarter. It could be said that it came almost entirely from the 220 Million NET INTEREST income. So for those not thinking clearly. Its all about attracting that certain critical mass level of assets and then having those assets borrowed against. To attract assets, you first have to attract customers. Advertising.

To: Spytrdr who wrote (11862)	2/19/2000 9:02:00 PM
From: BWAC	Respond to of 13953

Also something I missed in the SCH earnings report the first time: "Our investment in systems capacity, which totaled $126 million for the year, doubled our trade processing capabilities over the past 12 months, and enabled us to accommodate single-day records of 78 million Web site hits, 62,000 simultaneous customer Web sessions, and 228,000 online trades during December." 62,000 simultaneous users? Out of a total of 3.3 Million online accounts? I hope they have more capacity than that! Do you have any idea the number of simultaneous users EGRP can accomodate?