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.

Strategies & Market Trends : Range Bound & Undervalued Quality Stocks -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (1793)	4/13/2000 9:28:00 AM
From: BWAC	Read Replies (1) \| Respond to of 5499

I like to contradict so let me try; EGRP and AMTD got sprinkled in among some other very good picks that due to market forces have done quite well over the last few weeks. ONE, FTU, BAC, DPH, ODP, GT, ALL, SAFC, SPC, CNC (still in progress), and those are just off the top of my head in 30 seconds. There were many others as well. I think EGRP and even AMTD fits the undervalued part and even the range bound part, the quality part is in the eye of the beholder. Anyway, have you actually stopped to look at the account growth EGRP is getting? Or that the advertising expense will not continue to be a 68% drag on revenue? Just returning to a still agressive, but closer to everyday reality budget of 20%, would add $100 Million pretax to the bottom line per quarter. Which would, could, might translate out to a PE of 23 for a company that is growing trading revenues, customer assets, net interest revenue, etc. at a 100% yearly pace. Also consider that at this point in EGRP's life is it better to be profitable/pay income tax of 40% or is it better to reinvest all "would be" earnings into growth, even that 40% that Uncle Sam would get? In EGRP's case I can see where the future profits will come from. And I can see where the current profits are going. Which beats me on many other internet related stocks.