Charles Schwab (SCH) -- A tech-stock profile? Message Board

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Non-Tech : Charles Schwab (SCH) -- A tech-stock profile?

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To: Skeeter Bug who wrote (718)	6/15/1999 6:37:00 PM
From: Richard Forsythe	Read Replies (3) of 1390

Customer assets are down because the market is down. That's what happens sometimes when you own equity. If you don't want it to happen, buy a CD. The total asset number is a rough proxy for the level of the market as a whole. Net new assets happen because more people open accounts and/or transfer money TO Schwab than close accounts and/or transfer money OUT of Schwab. For May it was $8.6bn, April it was $5.7bn and for the first quarter it was $28bn. This compares to last year, when the numbers were 7.1, 4 and $21bn respectively. So, not only do you have sequential growth in new assets (5.7 -> 8.6), but also year on year growth (7.1 -> 8.6). If they take in 7.5bn this month, that would put them on 21.8bn for the quarter, or about 25% over last year. These are incredible results for such a large company. As to stock valuation, it was clearly pricey at $157. Is it pricey at $82? I don't know. But the company is not hitting a wall -- it's still growing at a fast clip. Richard

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