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

To: RetiredNow who wrote (2726)	4/7/1998 9:28:00 PM
From: Paul Shread	Respond to of 13953

From Briefing.com: ETRADE Group (EGRP) 26 15/16 +1 3/16: Internet broker reports Q2 net of $0.15 a share, in line with estimates and up from the year-ago net of $0.09. Revenues rose 65.6% to $53.3 mln. Though this report is respectable in terms of headlines, concerns about a slowing pace of growth will be heightened by the Q2 numbers. Sequential growth has slowed dramatically for ETRADE, and the year/year numbers will not look nearly as lofty in the coming two quarters. After seven straight quarters of double digit percentage increases averaging 29%, sequential revenue growth has slowed to just 5.5% and 4.3% in Q1 and Q2. Earnings have flattened out as well; they have been $0.15-0.16 for each of the past four quarters. And while new accounts boomed at an 888 per day pace in Q2, total transactions were up just 1% sequentially after a similarly poor 1.6% increase in Q1. The company noted that transactions picked up in February and March, but as we well know, what the market giveth, the market can taketh away. EGRP sports relatively conservative P/Es of 41 for 1998 and 30 for 1999, but these decidedly non-Internet style P/Es are appropriate since E*TRADE is looking more like a mature brokerage business than an Internet moonshot....

To: RetiredNow who wrote (2726)	4/7/1998 9:54:00 PM
From: michael a	Read Replies (2) \| Respond to of 13953

Mindmeld- I think you may be missing something here. Jeff is spot on. Forget about the "rhetoric" the "words" E.trade blabs in its announcement...what do you expect them to say "things are bad, and you really shouldn't own our stock"? LOOK AT THE NUMBERS. When is a growth stock not a growth stock? When it is not growing. Don't look back 12 months, which is like three years in internet time. Those figures are irrelevant. Check out this growth(NOT) Q4 1997: $64.1 million revenue Q1 1998: $59.8 million revenue Q2 1998: $53.3 million revenue Where Jeff erred was that their profit margins did increase...But BIG DEAL. They can increase margins from 11% to 50% all day long, but if revenue continues to decline....they are imploding. The idea is grow revenue.....you know, grow sales! Their 'sales' are way off for a company in which investors are paying a premium for growth.....I don't need an analyst to tell me which way to go on this one. RENENUE TREND UP = GOOD. REVENUE TREND DOWN = BAD Unless of course, a company is restructuring, or changing businesses, or shedding assets.....hmmm??? MA