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

To: Michel Bera who wrote (2669)	3/31/1998 11:21:00 PM
From: Marty Rubin	Read Replies (1) \| Respond to of 13953

Daily Alert for Monday 3/30/98: (From: cda.com, an insiders watch dog. Marty) ETrade Group Inc. - EGRP -- Analysts seem to approve of ETrade Group's decision not to join in its competitors pricing war, applauding the company's focus on differentiation through financial services. They posit that as more investors realize the online brokerage customer will choose their broker based on such non-price-related factors as content quality and ease of use, shares of ETrade Group will become more attractive. Although the company has thus far delivered positive results in an increasingly competitive environment, upon further analysis, recent insider activity, while not alarming at first glance, brings into question the sustainability of this trend. From January 21 to February 10, five insiders sold or filed their intention to sell 346,008 shares at prices ranging from $20 to $24 per share. Notably, these sales are coming well off the stock's $45 highs. Perhaps even more striking is that executives have, for the most part, significantly trimmed their holdings since ETrade Group's IPO in August '96. President & CEO Christos Cotsakos revealed his intention to sell 188,008 shares (partially through a trust)-his largest potential round of distribution since the company's IPO. While we expect token sales by insiders at a recently-public issue, after these sales, Mr. Cotsakos will have reduced his actionable holdings (common stock plus exercisable options) by more than 25%. EVP - Consumer Operations Kathy Levinson filed to sell 30,000 shares, which would bring her holdings reduction since the IPO to 33%. Business & Legal Consultant Keith Petty's sale of 20,000 shares brings his sales total since '96 to 155,000 shares-a 35% drop in his actionable position. Finally, Chairman William Porter sold 50,000 shares and planned sales for an additional 50,000 shares. This activity, coupled with recent insider sales at on-line competitor Schwab, could signal that margins for Internet brokerages may not be improving in the near term. Copyright (c) 1998. CDA Investment Technologies [800-243-2324] CDA/Investnet and Insiders' Chronicle are registered trademerks used herein under license.