TD Waterhouse/Greenline is the crown jewels of TD bank, projected growth in day trading is anticipated to increase profit and revenue. Waterhouse/Greenline are leading discount brokerages and Greenline dominates the Canadian market. Most of their customers are buy and hold investors, which if you compare per account income generation, TWE is lower than other internet on-line brokerages. There is tremendous growth opportunity here if TWE can improve their services and speed of their trading systems. At $100M profit per year and growing, TWE is extremely profitable and successful. And, is way ahead of other internet companies which don't even have $100M in revenue, but have the a larger market cap.
My prediction is a 20% increase on the 1st day of trading followed by steady increases until the stock hits a peak of 2x IPO price and then a minor correction of 20-30% before continuing upwards. Of course if the markets in general take a tumble, TWE will follow, but will hold above IPO.
Last I heard, TWE is way over subscribed and Greenline closed its books only 4 hours after opening it. IPO is sold out across all brokerages and huge demand is still out there. Lots of people are pissed that they are being left out and Greenline closed their books so early, leaving a lot of potential buyers out in the cold. There will also be huge institutional demand because TWE will most likely be included into the TSE300, which means index funds must purchase TWE. In addition, Greenline and TD's huge family of mutual funds will also likely purchase a significant chunk of available TWE. Hopefully Greenline will live up to their claim of fair and equitable allocation of shares.
The above is my opinion. There are many others that disagree with me. |
