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

To: CanynGirl who wrote (3168)	7/13/1998 7:27:00 AM
From: Robert Giambrone	Respond to of 13953

Merrill Lynch's Negi on Softbank's Purchase of 27.2% of ETrade Bloomberg News July 13, 1998, 2:48 a.m. PT Merrill Lynch's Negi on Softbank's Purchase of 27.2% of ETrade Tokyo, July 13 (Bloomberg) -- A comment from Mahendra Negi, an analyst at Merrill Lynch Japan Inc., on Softbank Corp.'s agreement on Friday to pay $400 million for 27.2 percent of ETrade Group Inc., the second-largest Internet-based brokerage. ''Softbank (Corp.)'s paying a market price for ETrade (Group Inc.), so it's not a bargain. ''But it's good news for Softbank, because the business model in the current format, where there's just advertising revenues, cannot become a very successful one. ''Softbank's investment in Yahoo! (Inc.), for example, is in an Internet search service, it isn't in a commercial platform. But the investment in ETrade is in a commercial platform. ''The synergy from the combination of these two kinds of businesses has a much greater chance of success than just one. To that extent it's a good investment. ETrade's shares have gone up, and it does have earnings, so I rate it as a less risky investment. ''The pattern of investments and acquisitions will continue because Softbank received about $1.2 billion after the Ziff-Davis (Inc.) listing. This won't make much difference to Softbank's earnings forecast, because even now E*Trade doesn't make that much money, but it's better than keeping the money in the bank,'' said Negi. news.com

To: CanynGirl who wrote (3168)	7/13/1998 8:19:00 AM
From: cynic	Respond to of 13953

Anybody know (or can intelligently speculate) how the Softbank investment in ETrade will affect the long price of Knight Trimark (NITE)? ETrade owns approx 27% of NITE and floats a majority of its trades over to this Market Maker. If ETrade increases account aquisitions at an faster pace due to the Softbank partnered expansion into Korea and expanded service in Japan that could only mean even larger volumes going into NITE in the future. Also, the strategic marketing arrangement with Yahoo will definitely increase accounts and trading. This definitely looks to be a stock one should look into. Comments? P.S. There is a NITE thread on SI for anyone interested in the company's background. Also www.ipocentral.com has all the latest news and prospectus on the company.