Trading at $12.44 as of February 7, 2001
Dear Mr. Cotsakos,
I am writing to ask for E*Trade's (Nasdaq: EGRP) hand. I wanted to make this request in person, since you are the company's CEO, but your San Francisco home is just too far away, and this can't wait any longer.
Since the day I met E*Trade, back in the summer of 1997, I was smitten. Admittedly, at first I thought she might have been too young for me. So, we started off slow with a minimal commitment to each other. It was not exclusive at first, but I am now ready to commit to her. It used to be that I would only fall for mature companies, but something was special about this one.
She intrigued me right off the bat with her boldness, and each day we spend together I learn something new that reinforces my passion. I miss her most on the weekends when we are separated and sometimes get confused by her early morning and late-afternoon mood swings, but I have come to accept that as part of her inherent volatility.
When she began her tour around the world, some may have thought she was too much of an unknown. "She'll never survive against the better known models," they wrote. The world-renowned "Mary" Lynch (NYSE: MER); the former Miss Brokerage "Sally" Smith-Barney, with her rich and powerful father Mr.Citi (NYSE: C) himself; and of course the unforgettable rising star and American heartthrob "Charlise" Schwab (NYSE: SCH) were already strutting their stuff up and down the ticker-tape runways of the world. Yet, E* set out to make a name for herself in places like Australia, Japan, and the U.K. Now she is known around the world. And, when she signed on with one of the industry's most well-respected agents, Mr. Softbank, I knew her career would take off.
Her appeal to the up-and-coming generation is on the rise, as evidenced by the new fans (one of every four shoppers) she signed up at the beta site Target (NYSE: TGT) store in Roswell, Georgia. Most surprising is the demographic of those new fans (median income greater than $75K). I only hope she will have the same success in Golden, Colorado and the other 20 new locations she has recently signed up. But, most exciting for us both is E*Trade's very own bricks-and-mortar store opening this month in New York City. Wow, that's the big time! Everyone knows that, in her business, she must have a strong presence in the Big Apple.
Admittedly, our first few years together were tough. At first, I thought it was her maturity level. Like the other young upstarts, she spent all her time and money building a name for herself. I was concerned she would neglect the fans she had captured and eventually lose them all. But, I felt in my heart that the more people got to know her, the more they would appreciate her, just as I do. She represents the future with her tech-savvy ways and virtual infrastructure.
Our relationship has truly been an up-and-down experience. Things seemed just dandy in April last year, and then wham-o! Suddenly, the public turned on her and for awhile I thought I could lose her. I reflected on our commitment and discovered more hidden talents than before. This is when I knew my love was real. I started funding her extravagant escapades. The more the general public blasted her, the more I fell for her.
I knew she could offer her fans things that the competition could not, and as the public takes notice, her image is growing stronger. Just last month, 80% of new customers signed up on the Internet in real time, rather than having to mail in signed forms. This was made easier with the passing of the Electronic Signatures in Global and National Commerce Act last year. It was a great moment for us both.
Much has been said about her spending habits in the press. Comments like "At this rate, she'll be six feet under by the end of the decade" and "Fame may not bring this upstart the respect she desires" were probably the harshest. Last year's Super Bowl ad may have done wonders for her name recognition, but I was concerned it lumped her in with the dressed-to-the-hilt, look-at-me-now girls that wouldn't make it through the winter.
Then came your latest PR statement, that you will be trimming her allowance. The sooner she gets over her spendthrift ways, the sooner the public will recognize her positive (read: profitable) attitude and unlimited potential. In her business, it's not just about image anymore. It's time she revealed her whole self.
You needn't worry about us. We have just secured a new address in NYC and will be surrounded by some of the greatest success stories in American business. Our new address will be the New York Stock Exchange and we move in sometime in February under our new nickname, ET.
Sir, I can assure you that no matter what happens, I will always be a fan of hers and hope to grow old with her. Thanks, Dad!
Foolishly,
Todd N. Lebor
Todd Lebor is a co-manager of the Rule Maker portfolio and lives in Alexandria, VA. At the time of publication, he owned shares of E*Trade Group. Todd's other holdings can be found online, along with the Fool's complete disclosure policy.
Stocks Fools Love represents the opinion of one Fool and should in no way be taken as the opinion of either The Motley Fool, Inc. or the company in question, or as representative of anyone or anything else other than that specific Fool's thoughts.
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