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To: AJ Berger who wrote (182)	5/2/1999 9:08:00 AM
From: AJ Berger	Read Replies (1) \| Respond to of 2005

From an Internet Stock Portfolio Manager techstocks.com Q: Lets talk about the Internet brokerage stocks. Some of these stocks like; Siebert Financial (SIEB), Ameritrade Holding (AMTD) and E*Trade (EGRP) literally see 20% price swings in a single day. What is going on in that area? A: This has been an area that we have stayed away from. We have been concerned with customer acquisition costs and the sustainability of their models long term, given these high spenditure rates. I think we are seeing a lot speculation with these stocks and investors have to be careful. Q: You have stayed away from these online brokers firms? A: That is correct. Q: Have you ever owned any of them during the past? A: No. Q: If they corrected maybe 50% or 75%, would you begin to look at some of them? A: It is tough to say. We have some underlying fundamental issues that are not price related. Again, most of these companies tend to show their most robust growth when they are spending more in advertising and marketing. When they take their foot off the pedal in that regard, growth slows dramatically. That is not the kind of model that we find attractive.