 |
The-Adviser.com The place to come for answers™ | ||||||||||||||||
| E*Trade
- Growth Problems. So What! Independent Buy-Side Research by The-Adviser.com - |
|||||||||||||||||
SERVICES WHY US |
(Analyst
is MD. Porcelain) - Update on June 18, 2000. The
Washington Post believes that online broker E-Trade is experiencing such
explosive growth that it poses a threat for the company.
Apparently, the 33% growth in new accounts during the first quarter of 2000 is causing a strain on operations particularly as it relates to finding qualified employees who can handle customer support calls. We believe that the growth problems are to be expected; moreover, we are increasingly impressed to see E*Trade continue to grow its account base. As new customers join the customer base (currently 2.3 million), cash flow from operations should continue to increase. E*Trade recently reported its first positive cash flow from operation quarter since embarking on its growth strategy. We continue to believe that E*TRADE remains a suitable investment for investors seeking aggressive growth from the Internet financial services market. The Company is focused intently on building its banking franchise. The Company intends to develop a nationwide network of Financial Services Kiosks to deliver not only deposits and withdrawals, but also educational content and investing tools that currently can be found on its Web site. We believe the banking strategy - albeit - expensive - continues to be appropriate for the company and will add more shareholder value in the long-term.As noted here before, E*Trade remains a takeover candidate for a larger firm. Acquisition talks between the Company and AMEX have been off for several months. We understand the company is still shopping and suitable partners include Chase and Citibank.
About Us ___________________________________________ Note: The Company does not earn fees for investment recommendations or referrals. Our research reports are prepared for general circulation and are circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. The Independent Adviser Corporation, its affiliates, directors, officers, employees and employee benefit programs may have a long or short position in any securities of an issuer or in related investments. Please read our full disclosures by clicking here. |
Growth Problems are causing employee recruiting difficulties Growth is resulting in an increase in positive cash flow from operations Open a professionally managed account:
Click here for our Top Ten Investment Picks Financial Advisory Services
|
|||||||||||||||
Why should you invest alone?™ |
|||||||||||||||||
The
Independent Adviser Corporation is a Registered Investment Adviser that
specializes in helping individuals, families and businesses develop
investment and financial planning strategies. DO YOU HAVE A QUESTION ABOUT INVESTING? |
|||||||||||||||||
| Click Here to Visit our Sponsor |
|||||||||||||||||
