TGL WHAAAAAAAT! Alerts, thoughts, discussion. Message Board

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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion.

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To: Jim Bishop who wrote (24523)	2/2/2000 5:04:00 PM
From: Katie Kommando	of 150070

Schwab decides to go deep discount too: Schwab to Lower Online Trading Fees, Buy CyBerCorp in $488 Million Deal An INTERACTIVE JOURNAL News Roundup SAN FRANCISCO -- Charles Schwab Corp. agreed to acquire day-trading firm CyBerCorp Inc. and announced it would cut online stock-trading commissions to grab more of the lucrative online market. The deal with CyBerCorp, a closely held company from Austin, Texas, is valued at about $488 million, Schwab said. Commission reductions will help out Schwab's most-active retail customers. Qualifying customers who surpass 60 qualifying trades in a quarter will pay commissions as low as $14.95 per trade. For the last two years, the company has charged $29.95 per trade. Schwab said the agreement with CyBerCorp calls for about 13.7 million unregistered Schwab common shares to be exchanged for all outstanding shares, options and equity rights of CyBerCorp. The acquisition is expected to be completed in the first quarter, Schwab said. The price cut will put Schwab's commission in line with lower-cost online brokers that are eating into some of Schwab's market share. The commission of $14.95 matches what archrival Fidelity Investments charges for active traders. E*Trade Group Inc. charges even less -- a base rate of $4.95 -- for customers who make 75 or more trades a quarter. Many CyBerCorp customers now pay $14.95 a trade. Schwab has tried to distance itself from day-trading, or minute-by-minute stock trading designed to capture tiny price changes in stocks. But Schwab and many other mainstream online brokers receive a disproportionate amount of their revenue from very active stock traders, though not necessarily day traders. At the end of last year's third quarter, Schwab's online-trading market share had fallen to about 23% from just under 28% six months earlier, according to U.S. Bancorp Piper Jaffray. Linnet Deily, Schwab Retail Group's vice chairman and president, said the "competitive realities of the market require us to pay close attention to our pricing and adjust it appropriately as we continue to enhance the technology and services we offer."

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