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

To: Scott Stents who wrote (3456)	8/4/1998 9:10:00 AM
From: Oeconomicus	Respond to of 13953

Scott, with all due respect, this is a ridiculous argument. Who said anything about EGRP being worth $75? All I said was that, at a p/b ratio of a little over two, it is quite reasonably valued (by that metric, anyway) compared to other securities firms. Besides, 3 times book would be about $36. BTW, most here in the past have argued that using such a conservative valuation methodology was ridiculous for a fast growing Internet commerce business, but I always argued that it is a financial services business first, albeit a fast growing one, and as such, should be compared to that peer group, not tech stocks. Financial services businesses, as a matter of financial reality, are constrained by their capital base. Raising additional capital and deploying it well within the business means faster growth down the road. There are risks, of course, and that is why it is not worth $75 ... YET. Give it a couple years. I plan to. Bob PS: The avg p/b of the peer group I listed was 3.75, not 3. Hey, discounters AMTD, SCH and TROW avg an 8.6 p/b. Is that a better peer group? Perhaps my target should be higher. Let's see, 8.6x$12=$103.2.<G>