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

To: Duncan Lestina who wrote (13012)	4/11/2000 12:01:00 AM
From: ecommerceman	Respond to of 13953

From the Bull Market Report... 4. ETRADE RAISES $300 MILLION IN VENTURE CAPITAL ETrade Group (EGRP, $24, unch) is raising $300 million in a venture capital fund they add to a portfolio of new companies that has racked up unrealized gains of $725 million. The move highlights a little-known weapon in the broker's arsenal to finance losses expected to stretch to $135 million in accumulated deficits through March 2001. On top of the profits early-stage investing can generate, ETrade's venture investments also yield new technologies it can apply to its brokerage and a potential source of shares in IPO's for clients of its EOffering unit. Access to IPO's is a key selling point for ETrade and its competitors. COMMENT: Of course they are raising a venture fund! Everyone else is, and unlike some others, it actually makes sense for ETrade to do so, with their ability to couple it with E*Offering. This makes a lot of sense, and based on their track record, could easily become an unmitigated success for them. This company has all the makings of a financial services titan. You do realize, of course, that they can go profitable at the snap of their fingers if they like. They are just spending big dollars in gathering market share right now, which should put them in the driver's seat for years to come.