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Non-Tech : Charles Schwab (SCH) -- A tech-stock profile? -- Ignore unavailable to you. Want to Upgrade?

To: Typhoon who wrote (900)	10/4/1999 12:18:00 AM
From: puborectalis	Respond to of 1390

Schwab Impresses Kevin Prigel May 18 1999 Ameritrade NASDAQ:AMTD Finance \| Internet \| Quote \| News \| Research Charles Schwab NYSE:SCH Finance \| Internet \| Quote \| News \| Research E*Trade Group NASDAQ:EGRP Finance \| Internet \| Quote \| News \| Research Schwab must now be considered the Internet broker. Over the past 8 months the brokers has attracted new assets totaling $100 billion. That's more than the rest of the independent competition combined. This new capital is fueling a trading explosion, with online trades up 34% in April alone, to 207,700 a day. Also encouraging is the fact that mutual fund trades in Schwab's One Source soared 17% in April to 52,900 trades a day, after two months of sequential declines. Over 65% of Schwab's trades are now conducted online. Scwhab nets $16 a trade from each of these transactions, and has not experienced a decline in this figure despite widespread fears of pricing pressures. Schwab is essentially America Online on steroids. Trading revenue is the "subscription," but with significantly higher margins. Portfolio holdings, quotes, news browsing habits, and detailed demographic data give Schwab the ability to target ads down to individuals. This type of advertising can generate revenues per thousand ad views more than 4 times larger than typical advertising. Finally, the service is the stickiest around, with perceived switching costs running from hundreds to thousands. Schwab has quickly locked up millions of long term web users, continues to lock up thousands more each day, and will harvest the profits for years to come.