Wednesday, July 13, 2005

Sell-side reaction to Ameritrade earnings (AMTD)

Morgan Stanley analyst Scott Patrick sent a note to clients in response to Ameritrade's  (ticker: AMTD) earnings Tuesday morning. Excerpts:

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Posted by David Jackson on July 13, 2005 at 12:02 AM in Earnings results, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Tuesday, July 12, 2005

Ameritrade discusses client segmentation (AMTD)

Ameritrade (ticker: AMTD) CEO Joe Moglia discussed his strategy for maintaining market share though  customer segmentation on his call this morning. Excerpts:

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Posted by David Jackson on July 12, 2005 at 01:28 PM in Conf call quotes, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Ameritrade beats by a penny, adds 24k accounts (AMTD)

Ameritrade (ticker: AMTD) announced its fiscal Q3 (calendar Q2) results this morning. Key data points:

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Posted by David Jackson on July 12, 2005 at 01:16 PM in Earnings results, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Friday, June 24, 2005

Sell-side reaction to Ameritrade's acquisition of TD Waterhouse (AMTD)

Morgan Stanley analyst Scott Patrick sent a note to clients outlining his view of Ameritrade's (ticker: AMTD) aquisition of TD Waterhouse. Excerpts:

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Posted by David Jackson on June 24, 2005 at 12:07 AM in Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Thursday, June 23, 2005

Will Ameritrade raise prices after its merger with TD Waterhouse? (AMTD)

Ameritrade (ticker: AMTD) announced Wednesday that it planned to merge with TD Waterhouse. During the ensuing conference call with financial analysts, CEO Joe Moglia was asked by Morgan Stanley analyst Scott Patrick the following: "...your typical customer, the 10.99 customer. Is that a customer that you think you can charge 17.95 for a broader service and still retain?". Mr. Moglia's response:

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Posted by David Jackson on June 23, 2005 at 12:14 AM in Conf call quotes, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (5) | TrackBack (0)

Monday, June 20, 2005

Ameritrade discusses branches and banking

Joe Moglia, CEO of online brokerage Ameritrade (ticker: AMTD), spoke at the Sandler O'Neil & Partners Financial Services Conference on June 8th. Here are his comments about adding physical branches to an online brokerage and expanding into banking:

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Posted by David Jackson on June 20, 2005 at 12:01 AM in Conf call quotes, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Thursday, June 16, 2005

Wells Fargo aims at Schwab, TD Waterhouse, Ameritrade, E*Trade (SCH, ET, AMTD)

Wells Fargo (ticker: WFC) is running an extensive advertising campaign offering up to 50 commission-free trades for customers with $250,000 in assets with the firm. Will this increase the pricing pressure on Ameritrade (ticker: AMTD), E*Trade (ticker: ET) and Schwab (ticker: SCH)? Details and quick comments:

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Posted by David Jackson on June 16, 2005 at 12:01 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Tuesday, May 17, 2005

Ameritrade (AMTD) is not for sale

Morgan Stanley analyst Scott Patrick contacted clients after Ameritrade (ticker: AMTD) rejected E*Trade's (ticker: ET) merger overtures. From his May 12th note:

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Posted by David Jackson on May 17, 2005 at 02:56 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET | Permalink | Comments (1) | TrackBack (0)

Monday, May 16, 2005

Internet news/analysis in brief

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Posted by David Jackson on May 16, 2005 at 10:33 AM in ticker: AMTD, ticker: ET, ticker: GOOG, ticker: HLTH, ticker: IACI, ticker: MIX, ticker: NAPS, ticker: NFLX, ticker: RNWK, ticker: SCH, ticker: TSG, ticker: TWX, ticker: WBMD, ticker: YHOO | Permalink | Comments (3) | TrackBack (0)

Tuesday, May 10, 2005

Sell-side thoughts on online broker consolidation

Morgan Stanley analyst Scott Patrick sent a note to clients after The Wall Street Journal reported that E*Trade (ticker: ET) had made overtures to Ameritrade (ticker: AMTD). Extract:

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Posted by David Jackson on May 10, 2005 at 12:20 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET | Permalink | Comments (0) | TrackBack (0)

Monday, May 09, 2005

Implications of an Ameritrade/E*Trade merger

The Wall Street Journal confirmed (paid subscription required) that E*Trade (ticker: ET) sent a letter to Ameritrade (ticker: AMTD)

"hoping to lure the Omaha, Neb., online trader into merger negotiations. The letter notifies Ameritrade's board of its intention to pursue a deal by signaling the price that it would be willing to pay. That price couldn't be learned."

Quick thoughts on the companies' strategies, challenges of integration, and 3 implications for competitors:

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Posted by David Jackson on May 9, 2005 at 09:32 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Thursday, April 14, 2005

More evidence of online brokerage price war

Two more data points about the online brokerage price war, following Ameritrade's (ticker: AMTD) recent comments on its conference call:

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Posted by David Jackson on April 14, 2005 at 11:14 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Wednesday, April 13, 2005

Sell-side reaction to Ameritrade - AMTD - earnings

Morgan Stanley analyst Scott Patrick sent the following comments to clients in reacton to Ameritrade's (ticker: AMTD) earnings results:

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Posted by David Jackson on April 13, 2005 at 08:25 AM in Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Ameritrade hints at impending price war (quotes from Q1 conf call)

Ameritrade CEO Joe Moglia described his dissatisfaction with Ameritrade's account and asset growth on his Q1 (FQ2) earnings conference call. Schwab (ticker: SCH) and Fidelity both cut fees and gained market share during the past quarter - Schwab retook the position of largest broker by trades. They, together with E*Trade (ticker: ET), are now aggressively courting long-term investors with substantial assets, rather than just frequent traders. Mr Moglia's comments are a "must-read" for any investor or manager in the online brokerage space:

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Posted by David Jackson on April 13, 2005 at 12:01 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (1) | TrackBack (0)

Tuesday, April 12, 2005

Ameritrade - AMTD - beats by a penny but cuts full year EPS estimate

Ameritrade reported Q1 (its fiscal Q2) EPS of $0.17, a penny above consensus, but effectively lowered its full year EPS guidance. Details:

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Posted by David Jackson on April 12, 2005 at 03:00 PM in Earnings results, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Thursday, April 07, 2005

Sentiment overly negative on online brokers AMTD and ET?

Morgan Stanley analyst Scott Patrick sent a note to clients arguing that investor sentiment towards online brokers Ameritrade (ticker: AMTD) and E*Trade (ticker: ET) has become too negative. He wrote:

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Posted by David Jackson on April 7, 2005 at 02:13 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET | Permalink | Comments (0) | TrackBack (0)

Monday, April 04, 2005

Ameritrade losing Freetrade customers as it moves them to iZone?

Ameritrade (ticker: AMTD) informed all customers of its Freetrade online brokerage service that it would be transitioning them to iZone, an effective price increase (to $5 per trade). But the move is generating push-back from price conscious customers, and potential customer defections. Here's the email Ameritrade customer service sent to disgruntled customers acknowledging their "concern":

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Posted by David Jackson on April 4, 2005 at 12:03 AM in Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (1) | TrackBack (0)

Tuesday, March 22, 2005

Online brokerage price cuts continue - SCH cuts options fees

Schwab (ticker: SCH) announced a reduction in its options trading commissions. Schwab clients who place 30 or more trades per quarter or maintain household assets over $1 million at the company will now pay ($9.95 per trade plus) $0.95 per contract, versus the old price of $1.40 per contract. Morgan Stanley's Scott Patrick compares Schwab's new pricing to competitors Ameritrade and E*Trade:

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Posted by David Jackson on March 22, 2005 at 01:14 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Sunday, March 20, 2005

IACI to purchase ASKJ, plus news/analysis in brief

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Posted by David Jackson on March 20, 2005 at 09:49 PM in ticker: AMTD, ticker: ASKJ, ticker: GOOG, ticker: GSIC, ticker: IACI, ticker: MAMA, ticker: MNST, ticker: MSFT, ticker: NFLX, ticker: SHOP, ticker: UBET, ticker: YHOO | Permalink | Comments (2) | TrackBack (0)

Thursday, March 17, 2005

Sell-side reaction to AMTD, ET, SCH Feb trading and account numbers

Morgan Stanley analyst Scott Patrick reacts to February trading and account data for E*Trade (ticker: ET) and Schwab (ticker: SCH):

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Posted by David Jackson on March 17, 2005 at 06:23 AM in ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Wednesday, March 16, 2005

SCH outpaces AMTD and ET in Feb trades, but continues to lose accounts

Schwab's (ticker: SCH) February trading volume growth was stronger than Ameritrade's (ticker: AMTD) and E*Trade's (ticker: ET), but it continued to lose accounts. Details and comments:

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Posted by David Jackson on March 16, 2005 at 04:00 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Thursday, March 10, 2005

SCH outperforms AMTD, ET in market, but loses in Barron's

Barron's published (subscription required) its carefully-watched annual ranking of online brokerages over the weekend. The top performing web-based online brokerages with their total point rankings:

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Posted by David Jackson on March 10, 2005 at 10:54 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Friday, February 18, 2005

How bad is Schwab's account loss over the last year?

How many online accounts do Ameritrade, E*Trade and Schwab have, and how has that number changed over the last year? Here's the answer:

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Posted by David Jackson on February 18, 2005 at 02:26 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Wednesday, February 16, 2005

With E*Trade report, January data for all three e-brokers now available

With E*Trade's Janary average trades and new accounts report now in, it's possible to compare the performance of all three publicly-traded e-brokers - Ameritrade (ticker: AMTD), E*Trade (ticker: ET) and Schwab (ticker: SCH). The results:

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Posted by David Jackson on February 16, 2005 at 06:25 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Tuesday, February 15, 2005

Sell-side comments on E*Trade commission cut

E*Trade is the latest online brokerage to cut its commissions. Details, a quick comment, then an excerpt from a sell-side analyst's note to clients:

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Posted by David Jackson on February 15, 2005 at 09:55 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Monday, February 14, 2005

Schwab hemorrhages another 17,600 accounts in January, but stock up on Feb trading vols

Schwab lost another 17,600 accounts in January, despite recent commission reductions. January trades were down 13.6% from a year earlier, but February volumes seem to be holding up far better than expected. The stock is up about 2.5% in trading today. First some key stats from Schwab's report, then a quick comment and excerpt from an analyst's note to clients:

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Posted by David Jackson on February 14, 2005 at 11:34 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Friday, February 11, 2005

Ameritrade (AMTD) trading vols down, but is the stock sell-off overdone?

Ameritrade's daily average trading volumes in January came in at 175,000, slightly higher than (seasonally weak) December. With Nasdaq trading volumes down about 10% so far this month, it looks like February will be worse. But the stock's sell-off may have been overdone, according to Morgan Stanley's Scott Patrick. Here's what he wrote to clients:

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Posted by David Jackson on February 11, 2005 at 12:26 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Wednesday, February 09, 2005

Fidelity price cut pressures online brokers

Fidelity cut its brokerage fees again. Despite the claims of online brokerage CEOs, there is a price war unfolding in the sector. Details, incremental stock impact and a quick comment:

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Posted by David Jackson on February 9, 2005 at 05:36 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (1) | TrackBack (0)

Saturday, February 05, 2005

Schwab cuts commissions

Schwab announced that it is cutting trading commissions for customers with over $50,000 of assets with the firm and those who trade 9 to 29 times per quarter. Trades will now cost $12.95 for the first 1,000 shares plus $0.015 per share thereafter. Here's what Morgan Stanley analyst Scott Patrick had to say about this, plus a quick comment:

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Posted by David Jackson on February 5, 2005 at 08:37 PM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 19, 2005

Ameritrade (AMTD) on online brokerage consolidation (quotes from the conf call)

Here's what Ameritrade had to say about consolidation in the online brokerage business, account growth, sources of profits and repurchase of stock:

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Posted by David Jackson on January 19, 2005 at 03:50 PM in Conf call quotes, Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 18, 2005

Ameritrade beats estimates, adds accounts

Highlights from Ameritrade's results:

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Posted by David Jackson on January 18, 2005 at 05:18 PM in Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 11, 2005

Ameritrade tests $5 trades

The WSJ reports that Ameritrade is testing a bare-bones online brokerage service called IZone at ameritradeizone.com. Stock trades cost only $5, but customers don't get real time quotes, research, news or investing tools. Real time quotes cost $9.99 per month, and news and research also involve extra fees. The service is available to investors with at least two years investing experience and a minimum opening balance of $5,000. Ameritrade rolled out the trial about two weeks ago with a direct-mail campaign in New York and radio and local newspaper ads in Los Angeles, Chicago, Denver and Phoenix.

Quick thoughts:

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Posted by David Jackson on January 11, 2005 at 12:03 AM in Sub-sector: E-finance, ticker: AMTD | Permalink | Comments (3) | TrackBack (0)

Thursday, December 23, 2004

November account growth for the online brokers

Ameritrade opened 19,000 net new accounts (newly opened accounts minus closed accounts) in November. E*Trade opened 14,815 net new accounts. Schwab lost 16,600 net accounts.

But new account openings don't tell the whole story for the online brokers:

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Posted by David Jackson on December 23, 2004 at 06:52 AM in Sub-sector: E-finance, ticker: AMTD, ticker: ET, ticker: SCH | Permalink | Comments (1) | TrackBack (0)