Our $19.74 price estimate for Charles Schwab implies a roughly 10% premium to the stock's market price.

Continue reading Schwab Acquisition Gives Customers More Options

Schwab Acquisition Gives Customers More Options originally appeared on BloggingStocks on Tue, 05 Apr 2011 14:40:00 EST. Please see our terms for use of feeds.

Charles Schwab (SCHW) has announced its decision to acquire optionsXpress (OXPS) in a friendly all-stock deal. This deal will help Schwab compete with other firms like E-Trade (ETFC), Ameritrade (AMTD), and Bank of America (BAC), which all have large online brokerage services and are vying to provide investors with the best tools and services.

The deal, which is expected to close by the third quarter of 2011, will cost Schwab $1 billion, and the company will issue 60 million new shares to swap each outstanding share of optionsXpress with 1.02 of its own shares. Our $19.74 price estimate for Charles Schwab is at a premium of almost 12% to its current market value.

Continue reading Chuck Adds optionsXpress to Schwab's Portfolio

Chuck Adds optionsXpress to Schwab's Portfolio originally appeared on BloggingStocks on Thu, 24 Mar 2011 09:10:00 EST. Please see our terms for use of feeds.

The nice thing about stock options is leverage. This is often magnified when there is a buyout, when there is usually a hefty premium.

Ironically enough, OptionsXpress (OXPS) would have been a nice options play today as the stock price is up about 15%. You see, Charles Schwab Corp. (SCHW) has agreed to shell out $1 billion for the company.

Continue reading Schwab Strikes a $1 Billion Deal for OptionsXpress

Schwab Strikes a $1 Billion Deal for OptionsXpress originally appeared on BloggingStocks on Mon, 21 Mar 2011 10:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Intel (INTC), ON Semiconductor (ONNN), Lattice Semiconductor (LSCC), Fairchild Semiconductor (FSC), STMicroelectronics (STM) and Altera (ALTR) to outperform from neutral at RW Baird.
• Capital One (COF) to overweight from equal weight at Morgan Stanley.
• Dollar Tree (DLTR) to buy from neutral at Goldman.
• Foot Locker (FL) to buy from neutral at Sterne Agee.
• Progressive (PGR) to buy from neutral at BofA/Merrill.
• Flow International (FLOW) to buy from neutral at Roth Capital.
• Signature Bank (SBNY) to buy from hold at Jefferies.
• HiSoft Technology (HSFT) to buy from neutral at UBS.

Continue reading Analyst Calls: AMTD, C, COF, DLTR, FL, GS, IBM, INTC, NYT, PGR, SCHW ...

Analyst Calls: AMTD, C, COF, DLTR, FL, GS, IBM, INTC, NYT, PGR, SCHW ... originally appeared on BloggingStocks on Fri, 04 Mar 2011 11:40:00 EST. Please see our terms for use of feeds.

Two weeks ago I decided to sell my shares of E*Trade (ETFC) after concluding it did not fit my investment criteria. It was one of my successful picks for 2010 and I made money having sold puts establishing a base price of $13.50. It closed Friday February 25 at $15.89.

I might not have chosen to post about this except for news that Ken Griffin's hedge fund Citadel Investment Group plans to sell much of its stake in E*Trade Financial. The largest shareholder selling out is news. Citadel will still hold valuable warrants, giving it the option of taking a very large position again, but for now there seems to be a change of heart for them as well.

Continue reading Chasing Value: Time to Sell E*Trade?

Chasing Value: Time to Sell E*Trade? originally appeared on BloggingStocks on Sun, 27 Feb 2011 13:40:00 EST. Please see our terms for use of feeds.

Rumor has it -- again -- that dot.bomb era survivor E*Trade (ETFC) may be acquired by none other than Charles Schwab Corp. (SCHW) for an initial offer of $24 a share. This chatter moved the stock price marginally Friday up 72 cents to $15.27. Although as of Monday morning the rumors are unsubstantiated, trading in stock options has heated up on the call side.

Bantering about the inevitable acquisition of E*Trade has been an annual pastime on and off for the past 10 years, but they resurfaced again in earnest after the financial crisis creamed most companies and institutions. E*Trade is currently capitalized at $3.37 billion. If the rumors bear fruit, the Schwab offer represents approximately a 60% premium to the current price.

Continue reading Chasing Value: E*Trade Schwab Buyout Rumors

Chasing Value: E*Trade Schwab Buyout Rumors originally appeared on BloggingStocks on Mon, 27 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

TD Ameritrade (AMTD), a broker whose competitors include Charles Schwab (SCHW) and E*Trade (ETFC), closed Wednesday's session higher by 2%. The final quote came in at $14.93. That's not too far from the 52-week low of $14.53. The twelve-month range is a narrow one, as the 52-week high is $21.30.

Is the stock a trade? An investment? Indeed, you may be thinking that it's time to buy. Some things worry me, however. The one-year chart isn't attractive at all. Well, in one sense it is, because a trader/investor would be buying low at this point.

Continue reading TD Ameritrade: How Does the Stock Look?

TD Ameritrade: How Does the Stock Look? originally appeared on BloggingStocks on Thu, 02 Sep 2010 09:00:00 EST. Please see our terms for use of feeds.

Option traders appear to be setting up for a bullish move on CA Technologies (CA). Traders plowed into 4,799 new call option contracts -- 13.87 times the average volume -- on the stock on Thursday. And we know that traders were eager to get into this trade because 98% of the trades came in on the "ask" price.

CA Technologies closed Thursday at $18.13. The stock has dropped 7.64% during the past month, but it is currently sitting at support just above $18.

Continue reading Option Traders Buying CA Technologies Calls and Tibco Puts

Option Traders Buying CA Technologies Calls and Tibco Puts originally appeared on BloggingStocks on Fri, 27 Aug 2010 08:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• CLSA upgraded Capital One (COF) to outperform from underperform based on valuation and an acceleration in loan growth. The firm raised its price target to $43 from $40.
• KeyBanc upgraded Brush Engineered (BW) to buy from hold based on increased confidence in profit momentum in Specialty Engineered Alloys, valuation and value-added revenue unit growth. The firm has a $30 target on the stock.
• Stifel Nicolaus upgraded Heico (HEI) to buy from hold with a $42 target, citing the better-than-expected Q3 results.
• Greenbrier (GBX) was upgraded to buy from hold at BB&T.
• Paychex (PAYX) was upgraded to hold from sell at Deutsche Bank.
• A. Schulman (SHLM) was upgraded to buy from neutral at Longbow.

Continue reading Analyst Calls: ASX, BW, CBOE, COF, CREE, MDT, NDAQ, SCHW, TSM ...

Analyst Calls: ASX, BW, CBOE, COF, CREE, MDT, NDAQ, SCHW, TSM ... originally appeared on BloggingStocks on Thu, 26 Aug 2010 12:00:00 EST. Please see our terms for use of feeds.

E*Trade (ETFC), an online broker whose colleagues include Charles Schwab (SCHW) and TD Ameritrade (AMTD), is a low-priced stock. It closed on Wednesday at $1.82, representing a rise of 2.8%; the move was backed by strong volume. The company reported first-quarter earnings yesterday after the bell. What should we make of the results?

According to MarketWatch, things seem to be improving. A loss of 2 cents per share compared very favorably to the loss of 41 cents per share booked in the year-ago period. As for estimates, the analysts were thinking that a loss of 3 cents per share was in the offing.

Continue reading E-Trade Still Speculative After Q1

E-Trade Still Speculative After Q1 originally appeared on BloggingStocks on Thu, 22 Apr 2010 09:30:00 EST. Please see our terms for use of feeds.

TD Ameritrade Holding Corporation (AMTD) didn't experience a spectacular start to its new fiscal year. The broker, which competes with Charles Schwab (SCHW) and E*Trade Financial Corporation (ETFC), was hampered by a decline in trading activities.

According to the press release, revenues increased a modest 2% from the year-ago period. On a sequential basis, the top line actually contracted. Net income decreased 26% to 23 cents per share. Earnings.com indicates an expectation of 26 cents per share. Margins and profitability metrics unfortunately were down across the board.

Continue reading TD Ameritrade's Q1 Worthy of a Trade?

TD Ameritrade's Q1 Worthy of a Trade? originally appeared on BloggingStocks on Tue, 19 Jan 2010 18:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Adobe Systems Inc. (ADBE) shares rose after lower Q4 earnings and revenue beat analysts' expectations.
• Best Buy Inc. (BBY) shares sold off despite better-than-expected Q3 results due to the lower gross margin.
• Charles Schwab Corp. (SCHW) warned that Q4 earnings would come in lower than the Street view
• Discover Financial Services (DFS) shares were up after it reported better-than-expected Q4 earnings.
• First Solar Inc. (FSLR) offered a solid 2010 outlook but the consensus EPS estimate is high in the range.
• General Mills Inc. (GIS) strong Q2 results included better-than-expected earnings and a rosy outlook.

Continue reading Earnings highlights: Best Buy, Discover, General Mills, Nike, Oracle, Rite Aid, Take-Two ...

Earnings highlights: Best Buy, Discover, General Mills, Nike, Oracle, Rite Aid, Take-Two ... originally appeared on BloggingStocks on Sat, 19 Dec 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Charles Schwab (SCHW) issues Q4 profit warning

Charles Schwab (SCHW) issues Q4 profit warning originally appeared on BloggingStocks on Mon, 14 Dec 2009 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: E-Trade, a word of caution

Chasing Value: E-Trade, a word of caution originally appeared on BloggingStocks on Fri, 20 Nov 2009 13:40:00 EST. Please see our terms for use of feeds.

E*Trade (NASDAQ: ETFC) is a well-known brand in the broker space. It competes vigorously with the other giants, TD Ameritrade (NASDAQ: AMTD) and Charles Schwab (NASDAQ: SCHW). To be honest, if I were looking for investment ideas in this sector, I would probably begin my search with the latter two. It's difficult to put E*Trade on the list. The company got in trouble during the financial crisis because it was exposed to the mortgage industry. It has now become, in my opinion, a speculative play on a return to glory.

The latest earnings report shows what I'm talking about. For the third quarter, E*Trade lost, on a GAAP basis, 66 cents per share from continuing operations, wider than the year-ago loss of 60 cents per share from continuing operations. After adjusting for an item related to debt extinguishment, the current red ink is equal to 5 cents per share.

Continue reading E*Trade loses less than expected in third quarter -- is this a victory?

E*Trade loses less than expected in third quarter -- is this a victory? originally appeared on BloggingStocks on Wed, 28 Oct 2009 15:45:00 EST. Please see our terms for use of feeds.

The brokerage reported a Q1 loss that was wider than the year-ago number. E*Trade lost 41 cents per share versus a loss of 20 cents per share in 2008. According to this source, that was a penny worse than what Wall Street was bracing itself for.

Continue reading E*Trade loses more money -- why would I want to own this stock?

E*Trade loses more money -- why would I want to own this stock? originally appeared on BloggingStocks on Wed, 29 Apr 2009 08:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) Q1 profit edged past expectations despite lower sales of Humira.
• AMR Corp. (NYSE: AMR) posted a smaller-than-expected Q1 loss, sending shares sharply higher.
• Baxter International Inc. (NYSE: BAX) reported better-than-expected Q1 earnings, sending share higher.
• BP (NYSE: BP) and other oil companies were downgraded due to higher environmental costs.
• Charles Schwab Corp. (NASDAQ: SCHW) Q1 earnings declined but still topped analysts' expectations.
• Chevron Corp. (NYSE: CVX) said Q1 earnings would be lower due to a weaker dollar and lower oil prices.

Continue reading Earnings highlights: Goldman Sachs, Google, Citigroup, GE, Intel, Nokia and more

Earnings highlights: Goldman Sachs, Google, Citigroup, GE, Intel, Nokia and more originally appeared on BloggingStocks on Sat, 18 Apr 2009 12:10:00 EST. Please see our terms for use of feeds.

In his Stellar Stocks Alert, newsletter advisor Richard Schmidt sees long-term opportunity in select brokerage stocks. Here, he looks at Charles Schwab (NASDAQ: SCHW) and E*Trade (NASDAQ: ETFC).

"Some of the strongest financials in the world have lost 60%, 70%, even up to 90% or more of their value in the last year. Shares of Charles Schwab have come down too. But the stock has lost less than 50%, at its worst.

"Most of that has come since October. We had hoped the stock would bottom. But the stock continued to drop through support, meaning the downtrend is still in place. We may eventually see it go down by more than 50%.

Continue reading Brokerage bets: Schwab (SCHW) and E*Trade (ETFC)

Brokerage bets: Schwab (SCHW) and E*Trade (ETFC) originally appeared on BloggingStocks on Sun, 15 Feb 2009 10:30:00 EST. Please see our terms for use of feeds.

E Trade Financial Corporation (NASDAQ: ETFC), which competes with TD Ameritrade Holding Corporation (NASDAQ: AMTD) and Charles Schwab (NASDAQ: SCHW), is doing splendidly today. As I write this, the stock is up well over 15%. But I would not touch this one with a ten-foot pole, as they say.

According to this article, E*Trade reported a quarterly loss on Tuesday of $0.50 per share. While that was a lot better than the $3.98 per-share loss reported in last year's Q4, it wasn't enough to beat expectations. Wall Street was hoping for a loss of $0.24 per share. E*Trade said in its press release that daily average revenue trades increased 18% and that 97,000 new accounts were captured. While both of those stats are impressive to a certain degree, an investor must keep in mind that E*Trade is a complicated story. The company really screwed itself by exposing its shareholders to so much financial risk; sure, that might be hindsight now, but it nevertheless is true. And with all the loan provisions and all the issues with the company's involvement with applying for the government's TARP initiative, etc., I can tell you that I absolutely would not want to play around with this stock.

Continue reading E*Trade misses in Q4, but stock rises anyway

E*Trade misses in Q4, but stock rises anyway originally appeared on BloggingStocks on Wed, 28 Jan 2009 15:34:00 EST. Please see our terms for use of feeds.

Nasdaq (NASDAQ: NDAQ) closed at $23.80. Bernard Madoff of Bernard Madoff Investment Securities LLC, was arrested by Federal agents because his investment advisory business was a "giant Poinzi scheme" reports the Wall Street Journal. NDAQ January option implied volatility of 85 is above its 26-week average of 70 according to Track Data, suggesting larger price movement.

NYSE Euronext (NYSE: NYX) closed at $25.98. NYX January option implied volatility of 97 is above its 26-week average of 72 according to Track Data, suggesting larger price movement.

Charles Schwab (NASDAQ: SCHW) closed at $16.98. SCHW January option implied volatility of 99 is above its 26-week average of 61 according to Track Data, suggesting larger movement.

TD AmeriTrade (NASDAQ: AMTD) closed at $12.92. AMTD January option implied volatility of 82 is above its 26-week average of 60 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Capital liquidity providers volatility elevated into Madoff arrest (NDAQ, NYX, SCHW, AMTD) originally appeared on BloggingStocks on Fri, 12 Dec 2008 08:30:00 EST. Please see our terms for use of feeds.