Yesterday EGRP said to GS conference a one time event. Q.? did they beta test s/w?
The price of the stock and volume turned after EGRP said volume trades up despite outages. Sure everyone was selling in Nasdq decay including all thosae EGRP insiders. Wonder what the numbers will look like in a month if people are mad and or afraid tp trade with them.
Better question what is the net asset under management excluding insider holdings of directors board.
Why does EGRP command such a multiple technology lead strategy. AT over 300/ new acct. they aren't the most efficient marketer
Are they making money no.
Are there others in this space with big pockets that will drive margins down?
Why did this stocxk run fro teens to 130 in a few months and then pullback to 80's while insiders were selling surrrounding split hyoe flood of pre split announcements of intentions
here is a sampling of problems lawsuits
insider selling technology a previous gimmie from EGRP failled is this cause they are growing too fast to sustain service?"
Did they beta test new software and once it failed why didn't they pull and fix it uinstead of crashing day after day.?
* Shareholders sell E*Trade Group Inc. <EGRP.O> after its trading system failed for several hours during three trading days last week.
''Our case is really targeted against E*Trade's advertising -- which we allege to be false and deceptive-- in which they represent that their system is available 24 hours a day and that trades will be executed in a matter of second,'' said Lisa Buckser, the Bernstein attorney who filed the 1997 suit
Internet broker outages cause losses, spur suits
By Jack Reerink
NEW YORK, Feb 10 (Reuters) - Recent glitches and outages at online brokers have caused some on-line investors to rethink their rapid-fire "day trading" of stocks and have spurred others to file lawsuits after suffering losses.
E*Trade Group Inc., the nation's third largest Internet broker, <EGRP.O> got hit on Wednesday with a second lawsuit after outages at its Web site prevented investors from trading stocks on three separate occasions last week.
The suit, filed in the Santa Clara County Superior Court by the Alexander law firm of San Jose, Calif., is seeking unspecified damages for investors who missed out on making money in the stock market because of the outage. The suit, which seeks class action status, follows a similar November 1997 law suit filed by the New York law firm of Bernstein Litowitz Berger & Grossmann in the same court.
E*Trade CEO Cotsakos Among Executives Selling Shares
Palo Alto, California, Feb. 10 (Bloomberg) -- E*Trade Group Inc.'s chairman and its chief executive were among eight executives and directors who filed to sell almost 750,000 shares in the No. 3 online brokerage.
Among executives selling are Christos Cotsakos, president and chief executive, who filed to sell 140,000 shares, according to the Washington Service, which tracks corporate filings with the Securities and Exchange Commission. Cotsakos owned 1.7 million shares as of Dec. 31, according to the company's latest proxy statement.
Cotsakos has already sold 120,000 of the shares, a company spokeswoman said. ''The sales represent their personal decision regarding their own investment portfolios,'' said Lisa Nash, vice president of customer management. ''The trading occurred in a narrow window after the release of fiscal first-quarter earnings'' Jan. 11.
Also filing to sell is a trust affiliated with William Porter, E*Trade's chairman and founder. The Porter Revocable Trust plans to sell 200,000 shares. Porter owned 2.2 million shares, according to the proxy. He's set to step down next month to focus on starting an Internet options exchange, and Cotsakos will add the title of chairman.
Debra Chrapaty, chief information officer, filed to sell 50,000 shares. She owned 64,637 shares as of Dec. 31.
They join General Atlantic Partners, a Greenwich, Connecticut-based fund that's E*Trade's second-biggest shareholder, which has filed to sell 4.1 million shares, or about 47 percent of its stake.
Separately, E*Trade's chief financial officer, Len Purkis, said last week's service outages were ''isolated'' and of ''limited'' duration. ''We have the most advanced technology that's improving daily,'' Purkis said at the Goldman Sachs Technology Symposium in New York.
An Internet investment bank that E*Trade is helping to start already has about 30 potential stock offerings lined up, he said. ''It's probably coming on line in the spring of '99.''
Palo Alto, California-based E*Trade will own 28 percent of E*Offering, based in Newport Beach, California, with an option to increase that stake to 51 percent. E*Trade's customers will get half of the shares in any E*Offering-managed transaction.
E*Trade now does business in 32 countries through 11 license- holding partners, Purkis said, and wants to be in the world's 20 biggest financial markets within three years. The company will also launch cross-border online trading ''sometime in the future,'' he said.
E*Trade rose 2 9/16 to 42 3/4, ending the stock's first six- day losing streak in seven months. It's up 83 percent since Jan. 1, and 220 percent in the past 12 months.
Ameritrade Holding Corp., the No. 6 online broker, surged 18 1/4, or 28 percent, to 83 5/16 ending four days of declines.
17:03:39 02/10/1999
At Home, E*Trade, Broadcast.com Investors File to Sell Shares
Washington, Feb. 8 (Bloomberg) -- Motorola Inc. and other early investors in Broadcast.com Inc., E*Trade Group Inc., and At Home Corp. are moving to profit by selling significant parts of their stakes in the Internet companies.
Insider sales at Internet companies are no surprise, as executives and shareholders alike take advantage of stocks that have doubled, tripled and even quadrupled during the past six months. The most recent sales filed last week with the U.S. Securities and Exchange Commission -- by Motorola, Shaw Communications Inc. and General Atlantic Partners -- stand out for their size and profitability.
Motorola and a related foundation filed to sell 1 million shares of Broadcast.com, Shaw Communications filed to sell 1.25 million shares in At Home, and General Atlantic Partners submitted plans to sell 3.29 million E*Trade shares.
All three investors bought their stakes at fractions of their current values, before the Internet businesses sold shares to the public. Companies such as Motorola and Shaw now want to take profits, according to industry experts, who say the sales don't reflect badly on the prospects for the Internet stocks.
At Home, E*Trade, Broadcast.com Investors File to Sell Shares
Washington, Feb. 8 (Bloomberg) -- Motorola Inc. and other early investors in Broadcast.com Inc., E*Trade Group Inc., and At Home Corp. are moving to profit by selling significant parts of their stakes in the Internet companies.
Insider sales at Internet companies are no surprise, as executives and shareholders alike take advantage of stocks that have doubled, tripled and even quadrupled during the past six months. The most recent sales filed last week with the U.S. Securities and Exchange Commission -- by Motorola, Shaw Communications Inc. and General Atlantic Partners -- stand out for their size and profitability.
Motorola and a related foundation filed to sell 1 million shares of Broadcast.com, Shaw Communications filed to sell 1.25 million shares in At Home, and General Atlantic Partners submitted plans to sell 3.29 million E*Trade shares.
All three investors bought their stakes at fractions of their current values, before the Internet businesses sold shares to the public. Companies such as Motorola and Shaw now want to take profits, according to industry experts, who say the sales don't reflect badly on the prospects for the Internet stocks.
I guess my basic question is all well. Does the company command a market cap that it holds given losses, lawsuits, questions regarding technology and managements decisions re operations of faulty system, insider selling, the unknown as yet impact that this will have on EGRP growth going forward. How many accts in next few months relative to abovce. How much assets under brokerage? Will this help other E brokers gain market share ie how much damage has been done.
I have gone from a believer to a skeptic.I have sold my shares given the above. I will not post here again unless and until the air surrounding these uncertainties.
Regards and best wishes to all
Regards
Norden |
