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TD Ameritrade Holding Corporation Message Board

  • cxsteven cxsteven Nov 16, 1999 9:19 PM Flag

    amtd up on bank deal

    Will real Ameritrade please stand up?
    E-broker
    up on bank deal, but analyst views are
    mixed


    By Emily Church, CBS MarketWatch
    Last Update:
    8:21 PM ET Nov 16, 1999 Also: NewsWatch

    NEW
    YORK (CBS.MW) -- Ameritrade's stock rose 16 percent
    Tuesday on renewed talk that the online brokerage is an
    acquisition candidate and with a little help for the
    financial group from the Federal Reserve.


    Today
    on CBS MarketWatch
    Greenspan nabs punch bowl,
    yet stocks surge
    Fed raises rates 25 basis
    points, neutral bias
    Home Depot tops targets

    Giddy Web stocks lead tech sector
    Pfizer spars with
    WLA, slams AHP
    More top stories...
    CBS
    MarketWatch Columns
    Updated:
    11/16/99 4:30:30 PM ET




    The stock (AMTD: news, msgs) also
    continues to post gains from Ameritrade's new alliance with
    Schwab (SCH: news, msgs) and TD Waterhouse (TWE: news,
    msgs) in an as-yet-unnamed Internet investment bank and
    on expectations for strong commission revenue from a
    banner November in the markets, said Greg Smith, analyst
    at Hambrecht & Quist.

    The Fed's switch
    Tuesday afternoon to a neutral "bias" on interest rates
    lifted the entire sector and particularly the brokerage
    group ($XBD: news, msgs). See related
    story.

    Mixed views

    At the same time, however, Wall
    Street is giving investors a mixed picture on the
    company. CIBC World Markets analysts on Tuesday started
    coverage of the Omaha, Neb., discount broker with a "hold"
    recommendation, tipping the scales toward caution. Of the 11
    analysts covering Ameritrade, six now have "holds" on the
    stock and five are recommending it as a "buy,"
    according to First Call.

    CIBC said Ameritrade's
    deep-discount model on the Web, at $8 a trade, had the "weakest
    prospects" for strong growth. The bank is looking at the
    sector to turn its focus from increasing new accounts to
    maintaining "high quality," presumably asset-laden,
    accounts.

    "With almost all of the hyperactive traders already on
    the Web, future customer growth at Ameritrade might
    be strong, but those new customers will trade at
    levels below the company's current high average,"
    analyst Amar Mehta told clients.


    The New
    York bank also started E-Trade (EGRP: news, msgs) at
    "hold" and TD Waterhouse (TWE: news, msgs) at "strong
    buy."

    Other analysts are more bullish on Ameritrade. Scott
    Appleby at Robertson Stephens rates the stock "buy" and
    said on Monday that his investment bank "especially
    likes Ameritrade for valuation purposes." He's
    expecting 100 percent growth in online brokerage accounts
    over 1998, based on industry account growth far
    exceeding estimates for the December quarter, and coming in
    around 1 million new accounts.

    Mergers on
    way?

    Meanwhile, analyst Richard Zandi of Salomon Smith Barney, in
    a note to clients Tuesday, said the Internet
    investment bank announcement on Monday "appears to us to be
    a precursor to consolidation."

    He continued:
    "We view it as evidence of the belief, particularly
    by Schwab, that the advantages of scale are too
    compelling to risk losing by going at it alone. However, it
    may also be an indication that current valuations are
    prohibitively rich to afford outright
    acquisition."

    Ameritrade ended up 4 5/16 to 30 3/4, while E-Trade rose 1
    1/16, or 2.8 percent, to 39 3/16 and TD Waterhouse rose
    1 3/8, or 7.2 percent, to 20 3/8. Charles Schwab,
    the largest online broker, rose 1 3/8, or 3.1
    percent, to 46 1/8.

    Ameritrade officials late
    Tuesday declined to comment on the recent movement in
    their company's stock.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • eom

    • amar mehta says no new active traders i say
      bullshit. two years ago i traded 10 times a year, mow i
      trade 10 times a week. my business partner who got
      tired of me running in and saying i just made another
      ?$, finally got on and he trades more than me with a
      lot less money. i put on classes and although i give
      my clients the choices i say i usually use
      amtd.

      its all about creating demand. amtd will not put mer
      out of business, it will overwhelm them in the amount
      of business it does. mer used to be known as the
      thundering herd because they catered to the little guy. they
      forgot their roots. but again, we wont bring them down
      we will overwhelm them. when the markets are trading
      10 or 20 billion shares a day in a few
      short
      years, there will be room for mer to grow but can u even
      imagine how many of those trades will be done by amtd.

      • 1 Reply to jonnykool
      • ....because of their own arrogance. They will rot
        and I will enjoy watching the biggest scums on the
        market fall on their face.

        Merrill figured they
        could come late to the game and everyone would jump
        ship. The problem is a) they cater to different
        clientele, clientele that want 10-12% a year safely and DONT
        want to trade online, and b) old habits die hard, as
        Microsoft found out with IE. People like and use Netscape
        (including me) even though its an inferior browser, because
        people have grown up on Netscape. Only within the past
        year after many years has Microsoft started to win the
        battle.

        I also have a two friends at Merrill. They have
        their concerns as well, like their role and their
        paycheck.

        Do remember we're in the minority doing online
        trading, and despite what any anal-yst says or any astral
        projections or tea leaves these people claim to posess, it
        will stay that way for this generation. Old habits die
        hard.


        DrButcher_md

    • investment bank alliance, and the new legislation
      allowing financial mergers, along with record trading and
      highs is driving this stock higher...It looks like a
      gap up again tommorrow, making 3 gaps in a row, also
      AMTD closes strong each day, showing real demand! This
      is the strongest OLB in the whole sector right now,
      and the shorts will feel the pain and drive it even
      higher. AMTD probably will be over 100 in 2 or 3
      months....

 
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