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

To: B. A. Marlow who wrote (6624)	5/28/1999 2:22:00 AM
From: David Tong	Read Replies (1) \| Respond to of 13953

If you are going to buy EGRP or AMTD, why don't you consider buying TD instead? As many of you guys have known this already: Waterhouse, the #3 largest on-line brokerage firm, is a 100% subsidiary of TD Bank in Canada. TD is know at least 20% undervalue. Here is the proof: There are altogether 5 major banks in Canada: 1. Royal Bank (RY): Mkt Cap: 14.5B, Profit: 1290M, Rev: 10.1B 2. Bank of Montreal (BMO): Mkt Cap: 10.2B, Profit: 934.5M, Rev: 9.7B 3. Canadian Imperial Bank of Commerce (BCM): Mkt Cap: 10.2B, Profit: 731M, Rev: 10.2B 4. Bank of Nova Scotia (BNS.TO): Not trading in US market 5. TD Bank (TD): Mkt Cap: 15.5B, Profit: 799.2M, Rev: 6.32B Based on the profit/revenue numbers, we can easily realize that TD Bank ranks 4/5 among the 5. It has the highest Mkt Cap simply because of it ownership of Waterhouse. However, TD Bank is planning to spin off Waterhouse (selling 10% to the public) next month in order to raise 1B. It means that Waterhouse should worth 10B in TD Bank eyes. From the profit figures, TD Bank comes very close to BMO and BCM which worth a bit more than 10B now. Just from the banking service, TD should worth about 9B. As a result, TD Bank + Waterhouse should worth 19B today. Trading at around $52, TD Mkt Cap is now 15.5B. When Waterhouse goes public next month, TD Bank should be trading at $52 * (19 / 15.5) = $64. So, I think TD is a really good deal today. Any comments? (Note: I've post this out to EGRP and DLJ message board as well)

To: B. A. Marlow who wrote (6624)	5/28/1999 7:52:00 AM
From: ecommerceman	Respond to of 13953

B.A. Marlow--nice chart, my point exactly. Pullin: Read this excerpt, taken from your post: "The Company would also be limited in its ability to effectuate future stock splits or stock dividends." Spytrader--Thanks for the rather sobering post. I think it's also worth remembering, however, that ETrade is kicking everybody's butt in terms of drawing newbies to their website (more than AMTD and SCH combined!), which is the first step to becoming a customer. This was a big gamble by Cotsakos, and has paid off so far fantastically. I don't think there's much doubt, either, that ETrade is miles ahead of the competition in terms of expanding globally--even if one grants every point made in the article, I believe that a long-term investor in EGRP will be well-rewarded in several years when this effort starts to kick in, big-time. Finally, Spytrader also reprinted the following passage from a different article that bears repeating: "Finally, Cook likes online broker ETrade. With estimated earnings of 18 cents a share for the fiscal year ending September 2000, ETrade (whose market capitalization is $10.4 billion), will be profitable soon, despite its massive marketing efforts. At Thursday's close of 42, it's also 33% off its 52-week high of 62 3/4 and boasts a robust 45% estimated earnings growth rate. And since March five analysts have started covering the stock with a Buy rating, while two firms upgraded their ratings to Buy and Strong "