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

To: EyeDrMike who wrote (6676)	6/1/1999 2:16:00 PM
From: ecommerceman	Read Replies (2) \| Respond to of 13953

EyeDr.Mike, You wrote: "Between this and the stock dilution they are planning, could fall even more." Several other people have made a similar post about the stock dilution, and I'm not following their logic--this is the same exact thing, to the best of my knowledge, that they did before the last stock split. What is different this time?

To: EyeDrMike who wrote (6676)	6/1/1999 9:45:00 PM
From: ecommerceman	Respond to of 13953

Re: the controversy of the stock dilution--from The Bull Market Report: LETTERS FROM OUR READERS - ABOUT E-TRADE Question: I read that E trade is going to increase its shares from 300 million to 600 million, to fund acquisitions. I have no clue to what this means or the ramifications. COMMENT: E-Trade has asked their stockholders for an increase in shares. What does this mean when a company asks for and does this? It means only that they now have the flexibility to announce a stock split or that they can issue new stock to acquire other firms. It means nothing in and of itself. It doesn't dilute your ownership or anything else negative. It simply is a means of having the ability to do some things in the future. It is usually good news.

To: EyeDrMike who wrote (6676)	6/1/1999 10:19:00 PM
From: ecommerceman	Respond to of 13953

"The buyout is pathetic" Well, here's what The Motley Fool has to say about the buyout: Tuesday, June 1, 1999 Online Financial Services Combo Savings & loan company Telebanc Financial (Nasdaq: TBFC) is getting jiggy with online broker ETrade Group (Nasdaq: EGRP), the companies announced this morning. The two companies will merge in a stock swap valuing Telebanc at $1.8 billion, with Telebanc shareholders receiving 2.1 ETrade shares for each of their shares. Based on Friday's closing price for ETrade, the deal values Telebanc at $93.45, nicely above its Friday close at $66 1/2. At 60% of assets, the deal value isn't shockingly out of line with the reality of incumbent banking companies, even if the price/earnings multiple of 262 times earnings (based on annualized Q1 earnings before charges) looks high. On a price-to-book basis, the deal also values the company at 3.47 times shareholders' equity, as Telebanc got off a timely $400 million stock offering in April. Considering Telebanc's 132% year-over-year growth in retail deposits and 160% year-over-year growth in its assets for the first quarter, and the product and service synergies the merger brings to the combined company, one could argue that the valuation on Telebanc is well within the realm of what the large incumbent banks have been doing in the last two years. Of course, one could also say many of those deals were pricey, but it couldn't be argued that Internet deal realities have decoupled from bricks-and-mortar deal realities. Telebanc shareholders will own 13% of ETrade upon closing.