Today Jim Cramer on his "STOP TRADING" segment on CNBC discussed the major movement in the stocks of online brokerage firms reacting to Bank of America giving free stock trading to those with $25,000 in accounts and after Zecco launched its free trading on Monday for $2,500 minimum accounts.
Cramer said these stocks are reacting to new risks and he wouldn't discount the Bank of America (BAC) initiative. He said this is a "gamechanger" for the brokerage world and B of A hid its initiative very well.
Cramer said free trading is the evolution of trends already underway. He said there may be a pause in the selling and a little bounce, but he thinks he would be a seller of the stocks.
Before Cramer came on, E*Trade (ET) was down 8.6% at $22.35, TD Ameritrade (AMTD) was down 11.8% at $16.85, Charles Schwab (SCHW) was down 4.2% at $17.30, and TradeStation (TRAD) had recovered to being down only 2% at $15.88.
Cramer also discussed Yahoo! Inc. (NASDAQ:YHOO) and noted that the current notion among some investors that the company is barely worth anything may be indicative of a bottom. H even compared it to homebuilder stocks. He said he wishes CEO Terry Semel would resign from Yahoo! and thinks the stock would go to $28 if he did resign.
Jon Ogg is a partner in 24/7 Wall St, LLC; he does not own securities in the companies he covers.
Cramer discussing online brokerage and Yahoo!
Posted Oct 11th 2006 3:25PM by Jon Ogg
Filed under: Analyst reports, Internet, Yahoo! (YHOO)
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