Data Mining For DARTs

Valuations of Trade Ideas LLC:

•No acquisition - 10 year NPV: $65,000,000

(NOTE: Based on the trend of doubling revenues every two years and conservative 10% discount rate)

•10% premium to NPV = $71,500,000

•16% premium to NPV = $75,400,000

•20% premium to NPV = $78,000,000

•Accretion to E*Trade or Scottrade (7 year projection)

(NOTE: Based on acquisition of exclusive rights to Trade Ideas technology)

•NPV at 10% discount rate – $500,000,000

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Trade Ideas Acquisition by E*Trade or Scottrade

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Trade Ideas LLC is an attractive acquisition target for either Etrade or Scottrade

Using 2009 incremental revenue impact of Trade Ideas on Scottrade and E*Trade, $76M and $39M respectively, and no positive change, the acquisition breaks even in 1.01 and 1.9 years respectively at a 16% premium to NPV acquisition