SI
SI
discoversearch

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 : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (3926)3/3/1998 1:45:00 PM
From: Russian Bear  Respond to of 18691
 
Bill, and everyone,

Here is my case for initiating a short of E*Trade (EGRP) and Ameritrade (AMTD):

Yesterday, Brown and Company finally entered the internet brokerage business with a vengeance. Brown's new commission rates for stock and options transactions are the lowest in the industry. There has been no press announcement to this effect. They did, however, place an ad in the last issue of Barron's (MW17,) heralding the new commissions.

As you probably know, Brown is a division of Chase Manhattan Corp. (CMB). CMB is a serious player, with deep pockets. Neither AMTD nor EGRP stands to gain from a renewed price war, especially with as formidable a competitor as CMB/Brown.

Both AMTD and EGRP trade in the stratosphere on P/E (in this market, that is not so unusual, I guess.) Both stand to have their growth rates significantly reduced as result of this development. Analyst downgrades should be forthcoming, IMO.

Here is an SI post on this subject that you should read: exchange2000.com

Brown's website is www.brownco.com.

Please let me know what you think.

Best regards,
RB



To: CalculatedRisk who wrote (3926)3/3/1998 3:29:00 PM
From: Pancho Villa  Respond to of 18691
 
CR: ACLY and revenue recognition. I was suspecting this was the case. Big bucks involved, few cops at the SEC, lot's of temptation for CFO's to massage the numbers. Lot's of people may end up in the can by the time this bull is over. The only regret is that the price pumping operation goes on while cash gets drained from one's account. I wonder what auditors will do. Unfortunately they don't come around frequently enough and are frequently lenient.

Pancho


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News