Professional investors like to use conference call transcripts as a valuable tool in their research toolbox. These are transcribed versions of an actual conference call, usually held publicly over the phone. Instead of listening to the full call, investors can get their hands on these things and read them at their leisure. They're generally full of information asked by both analysts and professional investors. Beyond the jargon, they're just really useful.
So, what did TD Ameritrade (NASDAQ: AMTD) have to say recently about ailing rival, E*Trade (NASDAQ: ETFC)?
Parsing the transcript, here are a few nuggets:
Prashant Bhatia - Citigroup Global Markets
Okay, and then, just finally, so far in January, the asset intake from E*Trade, is that still running at elevated levels versus historical trends and can you share any TFA data there versus history?
Joe Moglia, CEO, Ameritrade
I think again, for you to have clarity, I think it is appropriate for me to share that, we are not going to give specific numbers, but the numbers that we continue to see with regards to the inflow from them is significantly higher than anything we have ever seen historically.
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Michael Vinciquerra - BMO Capital Markets Corp.
One question, I do not want to beat this up, Joe, but the E*Trade, the $2.3 billion, I just want to make sure I understand, does that include only assets that they handed over to you, does that include subsequent transfers into the ACAT (account transfer)?
Bill Gerber - CFO, Ameritrade
It is only the ACAT that have transferred over to us.
Michael Vinciquerra - BMO Capital Markets Corp.
Okay, so those clients brought additional assets to you subsequent to that that would be included in the other $7 billion or $8 billion in net new assets?
Bill Gerber
Quite possible.
-------------------------------------Joe Moglia, CEO, Ameritrade
With regards to the E*Trade situation strategically now, we have said in the past that we would always have an interest in their account, but this is a very, very complex situation. There is tremendous risk-reward involved and we would like to do something in effect that works long term for our respective shareholders. And if it does not, we are not going to worry about it. So, we still have an interest in doing that. I just reinforced the fact that it is complex.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
