Monday, June 20, 2005

E*Trade discusses the sweet spot for online finance (ET)

Mitch Caplan, CEO of online brokerage and bank E*Trade (ticker: ET), spoke at the Sandler O'Neil & Partners Financial Services Conference on June 8th. Here are his comments about the sweet spot for the online finance business and price pressure in the online brokerage business:

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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: ET | 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)

Wednesday, May 11, 2005

Internet news/analysis quick links

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Posted by David Jackson on May 11, 2005 at 12:01 AM in Sub-sector: Search, ticker: ET, ticker: GOOG, ticker: GRU, ticker: MCHX, ticker: MSFT, ticker: OSTK, ticker: SHOP | Permalink | Comments (2) | 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)

Friday, April 22, 2005

Sell-side reaction to E*Trade's earnings

From Morgan Stanley analyst Scott Patrick's note to clients:

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Posted by David Jackson on April 22, 2005 at 02:19 PM in Earnings results, Sub-sector: E-finance, ticker: ET | Permalink | Comments (2) | TrackBack (0)

Thursday, April 21, 2005

E*Trade on online brokerage industry consolidation (quotes from 1Q05 conf call)

Until now, Ameritrade (ticker: AMTD) has been the key consolidator in the online brokerage industry. E*Trade (ticker: ET) was reportedly in talks with TD Waterhouse, but they fell apart. E*Trade CEO Mitch Caplan outlined the case for consolidation on his Q1 earnings call:

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Posted by David Jackson on April 21, 2005 at 12:21 AM in Conf call quotes, Sub-sector: E-tailing, ticker: ET | Permalink | Comments (0) | TrackBack (0)

E*Trade squeezes more profit from weak account growth (1Q05 earnings results)

E*Trade (ticker: ET) met consensus EPS estimates by growing operating income significantly more than revenue (14% versus 5%). Profitability per account is rising, but account growth is weak. Details:

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Posted by David Jackson on April 21, 2005 at 12:11 AM in Earnings results, Sub-sector: E-finance, ticker: ET | Permalink | Comments (0) | TrackBack (0)

Wednesday, April 20, 2005

E*Trade's ads are illegible

After recent speculation that E*Trade's (ticker: ET) current advertising campaign is a flop, the following ad has appeared on Yahoo! Finance (actual size):

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Posted by David Jackson on April 20, 2005 at 12:01 AM in Sub-sector: E-finance, ticker: ET | Permalink | Comments (2) | 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

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)

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)

Wednesday, April 06, 2005

Will E*Trade's new ad campaign flop?

E*Trade launched a new ad campaign "to promote the Company's position as an innovative financial services provider offering superior integrated financial solutions". That makes sense, but look at this gem from the ad campaign press release:

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Posted by David Jackson on April 6, 2005 at 12:12 PM in Sub-sector: E-finance, ticker: ET | Permalink | Comments (0) | TrackBack (0)

Monday, April 04, 2005

E*Trade Complete offers value, but will it take share?

E*Trade (ticker: ET) launched E*Trade Complete, a financial product that includes online trading, index mutual funds, checking and savings bank accounts, online bill pay, credit cards and borrowing. Four comments:

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Posted by David Jackson on April 4, 2005 at 11:14 AM in Sub-sector: E-finance, ticker: ET, ticker: SCH | Permalink | Comments (0) | TrackBack (0)

Monday, March 28, 2005

Gene Marcial recommends E*Trade's stock

Influential stock columnist Gene Marcial included E*Trade (ticker: ET) as one of his three picks in this weekend's Business Week. Will the column move the stock on Monday? A summary of his key points and a couple of quick comments:

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Posted by David Jackson on March 28, 2005 at 07:00 AM in Sub-sector: E-finance, ticker: ET | Permalink | Comments (0) | 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)

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 26, 2005

ET - key quotes from the conference call

Here's what E*Trade Financial had to say about asset growth, reliance on trading commissions, its new low-cost index funds, and the financial synergies between its bank and brokerage businesses:

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Posted by David Jackson on January 26, 2005 at 11:42 PM in Sub-sector: E-finance, ticker: ET | Permalink | Comments (0) | TrackBack (0)

ET beats, adds accounts, stock falls

E*Trade reported Q4 results this morning. The stock is trading down almost 3.5% now. Highlights:

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Posted by David Jackson on January 26, 2005 at 10:28 AM in Sub-sector: E-finance, ticker: ET | Permalink | Comments (0) | TrackBack (0)

Friday, January 21, 2005

Online mortgages growing slower than expected

Jupiter Research has scaled back its forecast for the proportion of mortgages that are initiated online. Jupiter now thinks that only 5% of purchase mortgages and 8% of refinance mortgages will originate online by 2009. Mortgage originations were expected to be a natural target for e-commerce. So what's happening?

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Posted by David Jackson on January 21, 2005 at 11:09 AM in Sub-sector: E-finance, ticker: CD, ticker: EELN, ticker: ET, ticker: RATE, ticker: SCH | Permalink | Comments (0) | 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)

Thursday, December 16, 2004

E*Trade and the difference between technology producers and consumers

Don't confuse Internet stocks with tech stocks asserted that investors need to differentiate between producers of technology (tech companies) and consumers of technology (such as Internet companies).  Producers' revenues will be hit by the deflationary forces impacting technology pricing, while consumers will benefit from those forces through lower expenses.

In light of that, E*Trade's comments today were interesting:

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Posted by David Jackson on December 16, 2004 at 11:35 AM in Sector Themes/Outlook, ticker: ET | Permalink | Comments (0) | TrackBack (0)