Another Nice Post from Raging Bull re: Advertising JBOH
By: keypounder_52
Reply To #2486 by keypounder_52 Saturday, 20 Feb 1999 at 5:16 PM EST
Post # of 2491
Went to spam IAAC on the JBOH Wazhoo board and found this l o n g gem.
Top:Business and Finance:Stocks:Financial:Investment Services:JBOH (JB Oxford Holdings, Inc.) Help - Add to My Yahoo! - Sign Out
Good point, but it doesn't work that way. If EGRP has
by: hello3278 18600 of 18600
650,000 accounts and we have 135,000 accounts then we obviously have 20% of the accounts that EGRP has. Therefore it could be argued that we should have 20% of the market cap of EGRP. EGRP's market cap is 4.6 billion, so 20% of this is 920 million. If JBOH 's market cap was 920 million then we would be trading at $65 a share right now. I could care less what anyone else says, but this is Ameritrade in its infancy right now. Two years ago Ameritrade began to aggressively advertise and since then their stock is up about 10 fold. Not bad, a $10,000 investment turns into a $100,000 investment in two years. Like Ameritrade did two years ago, JBOH is beginning to agressively advertise and investors will be richly rewarded just as Ameritrade holders were. I was kicking myself in the ### for not buying this gem when it was trading in the $3 range. I feel like it was a blessing to be able to load up in the $6's the other day. If you still aren't convinced, here is an excerpt from Ameritrade's annual report for 1997:
<RETAIL DISCOUNT BROKERAGE
The Company derives over 90 percent of its revenues from the provision of retail discount brokerage services. As of the end of its fiscal year 1997, the Company had over 98,000 core accounts, which represents an 88 percent increase in the number of core accounts at the end of its fiscal year 1996. Average daily trading volume during September 1997 was approximately 11,000 executed transactions, up from approximately 3,500 during September 1996. The Company provides retail discount brokerage services under two separate operating units, Ameritrade, (Inc.) and Accutrade, Inc.>
As you can see less than 2 years ago Ameritrade had less accounts than JBOH has today. So what accounted for Ameritrade's remarkable growth over a less than 2 year period. Here is another excerpt from Ameritrade's quarterly report that was filed a few days ago:
<RESULTS OF OPERATIONS
THREE MONTH PERIODS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997
NET REVENUES. Commissions and clearing fees increased 132 percent to $36.7 million in the first quarter of fiscal 1999 from $15.8 million in the first quarter of fiscal 1998. This increase was primarily attributable to an increase in the number of securities transactions processed, as average trades per day increased 215 percent to 33,489 in the first quarter of fiscal 1999 from 10,619
in the first quarter of fiscal 1998. The increase in transaction processing volume was primarily a result of a significant increase in customer accounts RESULTING FROM THE SUBSTANTIAL ADVERTISING EXPENDITURES made by the Company during fiscal 1998.>
You get it, heavy advertising is what got Ameritrade and its shareholders to where they are day. JBOH knows this and this is why you see them on CNBC all day. Just wait until you see the results next quarter from the increase in accounts from their "1 month of free trading campaign." Folks it doesn't get any easier than this. If you can't see the value and the future in JBOH then that's your right and don't invest your money here.
|
