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Non-Tech : AMERITRADE HLD A (NASDAQ:AMTD)
AMTD 1.000-1.5%Jan 15 3:59 PM EST
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To: jon zachary who wrote (947)4/15/1999 11:29:00 AM
From: CMon  Read Replies (1) of 1848
 
Sure. And retail customers will continue to make money because the bubble will just keep growing. There'll be an unending supply of stock that double and triple every month, that wealth will compound itself and we'll all be rich.

Then again, maybe the silliness ends, the baby boomers that have bought this bubble learn once again that everything they touch turns to crap, and the ones that have bought into this pipe dream on margin are taken out for good. Further, all of the other brokers with far superior borrowing power will roll over and let this and other discount brokers run away with their business.

For about as long as you care to look, brokerage stocks have been worth about twice book and 10x earnings. The fact that AMTD cuts out the broker by giving customers internet access seems to me to have some pros and cons to it. I'll grant you that it reduces their cost, but then it does the same for their competitors.

At the end of the day, I don't think that a lower cost method of delivering your product radically changes the value of a business when your competitors have the same advantage. So bulls here are paying for an ever increasing number of successful online retail customers. I think that in the very least they're ignoring the liability exposure of what will be the ever increasing number of wiped out retail customers.
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