Web brokers benefiting from Internet stock trade
NEW YORK, Nov 29 (Reuters) - Online brokers are set to reap the benefits of a November surge in trading of Internet stocks as volumes surpass record levels, according to a Credit Suisse First Boston analyst.
Daily average trades in Internet stocks hit 296 million for the month, up 44 percent from 206 million in October, said a report by James Marks.
``We are projecting daily average volumes in the fourth quarter for the online brokers will be up 20 percent to 30 percent from the third quarter, despite a slowdown during the holiday season,' he said.
``The increase in Internet stock volumes and Nasdaq volumes has lifted trading volumes at the online brokers back to the record levels reached in April,' he said. The Nasdaq market has set new record highs in recent weeks.
Marks said, ``We are positive for the short terms on the online brokerage stocks, and we will be raising our current quarter estimates for the six that we cover.'
On Nov. 5, Marks announced he had initiated coverage of Charles Schwab Corp. (NYSE:SCH - news), TD Waterhouse Group Inc. (NYSE:TWE - news), E*Trade Group Inc. (NasdaqNM:EGRP - news), AmeriTrade Holding Corp. (NasdaqNM:AMTD - news), DLJdirect Inc. (NYSE:DIR - news), and National Discount Brokers Group Inc. (NYSE:NDB - news).
He gave a strong buy rating to TD Waterhouse and National Discount Brokers, a buy to DLJ Direct, and a hold to AmeriTrade, Charles Schwab, and E*Trade Group Inc.
On Nov. 15, Schwab, the only online broker to release monthly figures, said it processed an average of 144,300 trades per day in October, more than it did in September.
``The monthly changes in overall Internet share volumes track very closely with Schwab's volumes, we believe the effect is even closer with other online brokers,' said Marks.
Charles Schwab was off 1-1/8 at 38-7/8, TD Waterhouse went down 11/16 at 17-1/8, E*Trade lowered 15/16 at 31, AmeriTrade slipped 7/8 at 23-5/8, DLJdirect went down 13/16 at 16-5/16, but National Discount rose 1 at 32. |
