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Non-Tech : SWS - An undiscovered gem

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To: Wallace Rivers who wrote (437)2/1/2000 9:33:00 AM
From: John Finley   of 504
 
Hi Wallace,

Sounds reasonable to me.

Schwab, IMO, benefitted the most from this "new" retail online pastime. I think that they saw the potential first and then positioned themselves to take advantage of it. As far as growth goes, I think their highest growth rate is past. I can't believe that the number of investors/trades are going to increase the way they have in the past few years. That leaves the "secondary" brokers to grow by mainly taking customers from the big guys. Ameritrade has been successful by advertising, E*Trade by position and advertising. SWS has been successful as you point out by the overall increase in trading volume because of SWS's broad base of services and to a lesser degree, MDB. I think for future growth SWS will have to rely more on MDB growth. I'm glad to see they're advertising again and ranking well in the comparisons. Also, it's good that SWS is the least inflated of the online brokers.

My point is (yes, there IS one <g>) that I think we are one of the "safest" investments in this arena, with little, if any, loss of growth potential.

JF
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