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

To: Rick who wrote (3455)	8/4/1998 8:29:00 AM
From: Scott Stents	Read Replies (1) \| Respond to of 13953

The term "infinite amount of shares" was not to be taken literally. The whole point is this - they have just issued 27% new shares within the last month. Using a industry P/B ratio of 3, this means that the market value of these new shares should in theory be $75, as they were sold to Softbank for ~ $25. Do you see where the logic falls apart for using the P/B ratio? Who would buy an infinite amount of shares? People who think the market would pay them 3X book INSTANTLY and triple their money without any risk.