Letter to Barron's
did you know that EGRP is trading at 4.5 times *trailing* sales, while SCHWAB commands a 9 price/sales ratio?
EGRP should be trading at TWICE its current level TODAY just to be on par with SCHWAB's ratios!
noone in his right mind can say EGRP is "overvalued".
it will show $ 2 billion in revenues this year, and the market cap is $ 5.5 billion.
hardly an expensive valuation for a company that's growing 150 % year-over-year and is a hair away from taking the NR. 1 online broker spot from SCHWAB by trading volumes, and a few months later, on sheer number of accounts too.
there are so so many good short candidates out there (AskJeeves, Epiphany, Infospace, etc), that really going against the online brokers at this point in time, trying to squeeze a 1 point return max on the short side is really a strech on your part, or Sanford Bernstein's.
come on guys, we all expect better from Barron's.
if there is an internet BLUE CHIP stock, ETRADE is it.
it's 2 times bigger than Yahoo, bigger than EXDS, EBAY, VRSN, and other $ 20 billion hot stocks out there with price/sales ratios in the 100s+.
it's profitable again after this quarter and will keep being profitable, debt is negligible, and business is booming.
besides, the volatility in the market only helps ETRADE, since the buy-n-hold strategy is not working in this environment, you have to trade, in and out of positions fast, go long, go short, use automatic protective stops, lots of different strategies.
volatility increases trading, NOT reduces it.
besides, ETRADE is not just about online trading anymore.
"There are a lot of companies out there that are in a one-horse race with a one-horse team,' Cotsakos said. 'We have institutional, international, business solutions, banking, the huge retail piece, and the portal. That's very difficult for people to copy-cat.'"
Nasdaq Europe and Nasdaq Japan go live this year, and you'll be able to trade through the ETrade global trading network in all major world markets, day OR NIGHT, through any device, PCs, wireless phones, TVs, and other devices.
the ETRADE cash registers once that happens will ring DAY AND NIGHT.
check this too if you have a minute.
moneycentral.msn.com
moneycentral.msn.com
you can't see the traditional brokers putting much of a "dent" in there, do you??
"The full-service firms have not only failed to put a dent in the account growth of Internet-only brokers, but actually bring in more customers, E*Trade's Cotsakos said.
``Given the disappointing results (the full-service firms) have had, the net result is that they are cannibalizing their existing customer base,' Cotsakos said. ``More importantly, they are giving credibility to a company like E*Trade.'"
in light of all this, are you going to keep repeating the same cliches and summer slowdown blues, or give us some informed journalism?
regards,
Spytrdr |
