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

To: Spytrdr who wrote (13267)	4/24/2000 12:38:00 AM
From: Spytrdr	Read Replies (2) \| Respond to of 13953

EGRP is extremely undervalued right now. a few price/sales ratios: EGRP: 4.90 AMERICAN EXPRESS (AXP): 3.5 AMERICAN INT'L GROUP (AIG) ($ 170 B. MARKET CAP): 4.50 SCHWAB: 8.20 considering growth rates, EGRP is very undervalued right now even by brick & mortar financial sector standards. and it's trading at half the ratio of its own peer SCHWAB! (let's not even talk about internet or tech stocks anymore, because the undervaluation of EGRP relative to that is even more EXTREME). amazing

To: Spytrdr who wrote (13267)	4/24/2000 9:32:00 AM
From: BWAC	Read Replies (1) \| Respond to of 13953

Spytrdr, You are right in that EGRP can buy accounts cheaper with ads. But sometimes that is not good enough. It makes perfect sense for some type of partner between EGRP and AMTD. You have 2 companies that have just reached the point in their life where any significant reduction in expense will return outstanding profits. EGRP is closer to critical mass, than AMTD is in public perception. But I think they are a lot closer than the popular belief tells us. EGRP surely can survive and prosper with or without AMTD. In fact both can survive and prosper. My only point was, if joined together there would be tremendous cost savings that would flow right to the bottom line. EGRP could eliminate the competition, and then take that competitions advertising dollars and show them as a profit for EGRP. Now imagine a significantly profitable EGRP, maintaining their current ad budget, and passing SCH as the daily trade leader? It could happen right now, today. Or you can wait for EGRP to continue down the current path and see it happen in 2 years. Either way is fine.

To: Spytrdr who wrote (13267)	4/24/2000 10:37:00 AM
From: BWAC	Respond to of 13953

Spytrdr, Got another minute or two now to further my response: " i think Ameritrade is missing the whole point. the game here is technology, not commissions." Right again. Working technology. "ETrade brings in almost a whole Ameritrade account base in a single quarter for $ 177 million in advertising, and you think ETrade will buy Ameritrade?? what for??" What for? Well the 177 Million in advertisng is only part of the cost. Actually its the initial cost. After you get them, you have to serve them. Add the cost of customer service, additional trading capacity, a new service center or two, finding and training employees to serve these customers, etc., etc. In sum the final cost of adding another 1 Million plus customers will be many times greater than just the advertising.