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

To: Mohan Marette who wrote (4570)	1/30/1999 1:37:00 AM
From: Gil Gilbertson	Read Replies (2) \| Respond to of 13953

I would doubt seriously the validity of a current takeover of either Amtd or Etrade. It would be foolish as it would require to much cash or stock of the acquiring company... A big outfit would more likely get together in their trading department and short into these high prices and then announce some competitive action that would lower the price substantially and then they could buy it with their profits at a much lower price.. I dont know if you have lived thru a bear market like 1974 when the bids dissappear almost to nothing. At that time the online stocks with their low commissions simply couldnt survive with volum dried up to a fraction of what it is today. However, the big houses will survive through other reserves and income sources and then I would look for some acquisitions. To prevent this the online companies must take advantage of these high prices and float secondary issues fairly soon to build up their coffers with large reserves, that in turn will cause dilution of the current owners stocks when it occurs. Again another negative.