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

To: Robert Giambrone who wrote (3032)	6/12/1998 3:52:00 PM
From: Robert Giambrone	Read Replies (2) \| Respond to of 13953

ETRADE RATING: ANALYST(S): BENJAMIN, KEITH RATING: BUY Synopsis: The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks." Destination ETrade, which includes proprietary content as part of The Professional Edge, launched in June to about 200 people and will be rolled out to all 400,000 customers over the next month or so. Around July, ETrade will open up some of the content on its newly designed site to the general Web public, which we believe could become one of the primary destinations for financial information and services, providing a new marketing tool. We estimate trading volumes have fluctuated with the volatility in the technology stocks, but we expect international deals may add to revenues in Q3. However we do not believe there will be much, if any upside to our EPS estimate. Competitive marketing efforts appear rather stable or stalled in most cases. We expect the ETrade to increase its advertising spending to promote Destination ETrade starting in the September quarter. Near-term, the financial model may be in flux as the company transitions from a transaction-dependant model to a higher mix of subscription, international license, and advertising revenues, allowing higher predictability of profits. We believe the current valuation appears attractive at about 34 times estimated F1998 EPS