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An SI Board Since March 1997
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Emcee:  esecurities(tm) Type:  Unmoderated
"AmeriTrade ( AMERITRAD HLD A ) stock continues its ascent

NEW YORK, March 5 (Reuter) - Shares of discount securities broker AmeriTrade Holding Corp ( AMERITRAD HLD A ) stayed on their upward track on the company's second day of trading, rising another two points from Tuesday's close of 19-1/2.

CS First Boston was lead underwriter on the 2.35 million share deal, which priced at $16 a share.

Vincent Slavin, who tracks initial public offerings for Cantor Fitzgerald, said he was taken aback by the run-up in the stock.
"I'm very surprised," he said and added that he believed much of the push was coming from a Jersey City-based dealer called
Troster Singer. "It appears to be that they've been the primary buyer," he said. Officials at Troster could not be reached for comment.

Slavin had assigned an "A" rating to the deal, which translated into a premium expectation, at the open, of about one point.
AmeriTrade opened at 16-3/4.

Kathleen Smith, analyst at IPO research firm Renaissance Capital Corp, said she liked the deal very much. "The valuation was very attractive and still is," she said.

Comparing AmeriTrade's valuation to one of its competitors, E *Trade Group Inc ( E Trade Group Inc ), Smith calculated that, while E *Trade's stock trades at about 12 times the company's latest 12 month sales, AmeriTrade was currently trading at roughly 5.9 times the latest 12 month sales.

This was an attractive comparative valuation, despite the fact that E *Trade was a faster growing company, she said.

Online brokerage service E *Trade has seen its stock rise from $10.50 at the time it went public in August, to 25-1/4 on Wednesday.

AmeriTrade had total revenues of $65.4 million and earnings per share of $0.87 for the year ended September 27, 1996, compared with total revenues of $42.9 million and EPS of $0.55 in the prior year.

For the quarter ended December 31, 1996, the company's total revenues were $19 million and it made a loss per share of $0.01. In its filing, the company attributed the loss to increased expenditure on advertisement.

Smith, while agreeing that margins would be affected in the near term by marketing expenses, said that "in this industry the customer retention rate is pays to advertise".

Much of AmeriTrade's strength, according to Steve Harmon, senior investment analyst at Mecklermedia's iWorld, lay in its established name and the variety of services it offered.

"They've been around and have a proven business model," he said. Given the company's diverse basket of services, it was better hedged against trouble than others Harmon said. The firm's move to the internet "is a complement to what they're already doing...they're not giving up anything," he said.

The 26-year old company, which operates under the names Accutrade, K.Aufhauser, Ceres and eBroker, provides retail brokerage services through a variety of mediums and also provides clearing and execution services. According to its prospectus, about 19 percent of its transactions were generated over the Internet during the quarter ended December 31, 1996..." [end]

other: J Ricketts, Chmn (NASDAQ:AMTD) is a controlling shareholder of Telescan (NASDAQ:TSCN) ref/TSCN fiscal 1996 SEC Form 10K

esecurities corporation
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1848I just found out about their sinkorswim platform. it seems interesting, but thGreen Receipt-6/30/2020
1847It's nice to hear that SCHW and AMTD merger/acquisition looks to be moving fOldAIMGuy-6/5/2020
1846On-Line Brokerage businesses have done well since C-19: Their stocks OldAIMGuy-5/13/2020
1845Latest on SCHWAB and AMTD Merger: cnbc.comOldAIMGuy-11/25/2019
1844Well, that was a nice, quick turn around on my latest buying. [graphic] This OldAIMGuy-11/22/2019
1843Here it is a year later than the last Post and AMTD was again back in my accumulOldAIMGuy-10/23/2019
1842AMTD's Price/Share fall over recent times now puts it about 5% above my &quoOldAIMGuy-10/11/2018
1841Tom Thanks for that great post. I still follow AMTD and trade in out. SoldMJ-3/24/2012
1840Hi MJ, It's been a long time since anyone posted here on the AMTD board. HerOldAIMGuy13/22/2012
1839Tom Don't recall if I mention on this board----I have been with AMTD since MJ-2/26/2009
1838Hi MJ, Re: AMTD "Accumulation"................. I, too, was surprisedOldAIMGuy-2/26/2009
1837Tom Saw your message on AMTD. The chart says accumulation. Amtd was or is buMJ-2/25/2009
1836Hi JR, Re: Buying on AMTD.................. I've been getting a constant buOldAIMGuy-2/24/2009
1835My streamer not working, Level II and Last sale is. Anyone else having similar pjames-rockford-2/24/2009
1834What do you think of Cool Trade? An automated system is likely as good as we huMJ-4/29/2008
1833Now CoolTrade is waiving all subscription fees for TD AMERITRADE clients. The lenl.investor-3/27/2008
1832RRuff Just in from Forbes--------- The embattled online brokerage firm reboundMJ-11/13/2007
1831Excellent points all around - Most retail brokerage accounts should be OK withinrrufff-11/13/2007
1830That's what I read also in relation to AMTD. Prior to this crash in EtradeMJ-11/13/2007
1829Don't follow this but there were articles yesterday that indicated that AMTDrrufff-11/13/2007
1828With E-Trade facing massive losses with CDO's, is there any info on TDA'Radiosport-11/13/2007
1826Hi T, Re: Ameritrade hack............... There had been some notice on this subOldAIMGuy-9/15/2007
1825sounds like it happened a LONG time agoNOW-9/15/2007
1824Hi TooEarly, It would appear that AMTD's discovery was a little TooLate!!! OldAIMGuy-9/14/2007
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