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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: LK2 who wrote (1855)	12/19/1997 4:16:00 AM
From: Frodo Baxter	Respond to of 9256

OFF TOPIC: Financials Well, I've been bullish on bonds for at least half a year, maybe longer (I forget), but I hadn't made any big plays yet. With liquidity sloshing around, and this little buying opportunity today, I thought I'd jump right in. I mean come on, bonds are 6% and dropping. This is incredibly bullish for financials. FLT: Fleet is a nice regional bank. Only the region is New England. Any bank with national aspirations (Nationsbank, First Union, Bank of America, the big NY banks) would love some coverage here. That's either Fleet or BankBoston, and Fleet's cheaper. EGRP: There was a time when E-Trade may have been considered speculative, but not now. Management was on the ball and recently pushed through a secondary that sold 7.3 mln shares at an incredible $27.50. So my entry point has a price-book of around 2.8. Brokers get taken out for a lot more than that. And I betcha E-Trade has more brand identity than Piper. Besides, even using conventional metrics, they are a steal. Growing at >100%, forward P/E of 30, biggest worry seems to be that November customer growth was only 5%. How many companies would kill to grow 5% monthly? I used to own Chucky Schwab until its valuation gave me vertigo (it's shot up another 30% since...) Chuck's forward P/E is higher than E-Trade's. Ain't no way Schwaby can grow faster than E-Trade. Also, I think I've mentioned that I also like BSC. Bear Sterns is a straight bet on bonds, with additional upside possible if they get taken out. They're next on the dance floor.