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: Richard Forsythe who wrote (1260)	3/2/2000 9:40:00 AM
From: TechMkt	Read Replies (1) of 1390

Magic 25 Mar 02, 2000 Schwab Surges on Prospects of Record Trading Volume Analyst: David Peltier (03/2/00) Charles Schwab (NYSE:SCH - news) and other online brokers have surged in recent trading sessions. The primary driver: First quarter trading volume has been monstrous. A record high 3.3 billion shares traded hands on the NYSE and the Nasdaq on February 29. According to sell-side analysts, trading volume is up 30-40% sequentially compared to traffic levels in the December quarter. Online brokers could very well increase their slice of the expanding pie, as sequential trading volume growth could near 50%. Currently one out of six trades is made over the Internet. To put that in perspective, 70% of Schwab's commission's are derived from the web. Shares of Schwab have gained of late on improved sentiment for the entire sector. Schwab shares are up roughly 20% in the last week to a recent $46.31. These strong trends should be confirmed when Schwab releases its February results next week. January figures showed a strong increase in trading volumes and $12.3 billion in new assets. While we feel that Schwab's size will limit it from recording hyper growth figures, the company should still show improvement in-line or slightly ahead of the industry growth. Analysts at Morgan Stanley and Chase H&Q were quick to raise their first quarter and full -year estimates. We still feel that Schwab will exceed the consensus EPS estimate of $0.23 in the first quarter by at least $0.26. The Street is being too conservative in our view, not fully quantifying how Schwab will perform in these ideal conditions. We remain bullish on Schwab as an Internet play and as a core financial holding. It is almost certain that the company will exceed all published EPS estimates when it reports in April. As we have said before, size and scale lead to accelerated profitability in this field-- and Schwab remains the 800-pound gorilla. Updated on March 1, 2000 with SCH at $45.31 Recommended on December 11, 1999 at $39.44

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