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Non-Tech : Charles Schwab (SCH) -- A tech-stock profile? -- Ignore unavailable to you. Want to Upgrade?

To: Spytrdr who wrote (1314)	5/2/2000 9:23:00 AM
From: X Y Zebra	Respond to of 1390

comments are welcome Just some questions: 1. If you think based on your estimates that EGRP's share price should be between $59 to $48, Why do you estimate that the market has not seen this discrepancy, since EGRP is trading in the low $20's ? 2. Why do you think EGRP should br given the same multiple as SCH ? * Reiterating our Buy - Focus List rating and increasing our target price by $4 to $44 based on better visibility on near-term profits. We believe patient investors will ultimately be well rewarded. 3. Is patience define as more than one year ? The unprecedented success of the quarter was primarily driven by three key factors: 1) stellar account growth, 2) explosive customer trading activity, and 3) scalability and operating leverage. 4. It seems they are relying heavily on trading volume for sustained revenue growth, this has the risk at one point that account growth will begin to flatten, in addition, in times of market decline, trading volume falls considerably. I noticed that they are taking such reduction into account, but it creates an important "unknown", which markets dislike. Envision the day some time soon when you will be able to aggregate and integrate all of your various financial accounts under a single virtual ETrade gateway and receive automated and intelligent asset, expense, and tax advice. We believe ETrade is on track to providing these types of powerful services. 5. I assume here they are thinking of other fee-based services, when are they planning to introduce those services and how are they thinking of implementing them (i.e. by acquisition, or developing them from within the firm). 6. How do you see the current interest rate environment affecting EGRP's share price ? 7. If one has to be patient for EGRP to perform, would it not be a better strategy to wait a while or sell naked puts against EGRP, in which case, as the price comes down, the cost of acquisition is then reduced by the premium received. Alternatively, if it does go up, then one receives the benefit of the premium, (as the put would expire worthless), and then at such point re-evaluate EGRP's acquisition. TIA