Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (31105)	4/7/1999 1:59:00 PM
From: IceShark	Read Replies (1) \| Respond to of 86076

A couple more option expiry cycles of fighting the sucker is needed in my mind. Out vote me if you boyz want. -g-

To: MythMan who wrote (31105)	4/7/1999 2:42:00 PM
From: TheStockFairy	Respond to of 86076

I totally vote SCH in. My wife told me last night that I should buy calls on SCH into the earnings and split. I am considering it. These are Sept 98 to Sept 97 Q to Q earnings. Sept 98 Sept 97 Assets in Schwab customer accounts Schwab One(R) and other cash equivalents (1) $ 14.7 $ 11.6 27% (good growth) Total Daily Average Trades Online 76.9 44.0 75% (a boatload more trades) Net growth (decline) in assets in Schwab customer accounts Net growth (decline) $ (19.3) $ 38.4 n/m (wait, people are losing money) (Look how well people are managing their money! I know there is a correction in there) Active Schwab customer accounts (in millions) 5.5 4.6 20% (bit more daytraders getting into the picture) Composition of Revenues 1998 1997 ------------------------------------------------------------- Commissions 48% 53% Net interest revenue 18 15 (SCH is losing money on commission and gaining in margin loans) Customer accounts that traded during the quarter (in thousands) 1,333 1,153 16% Average commission per revenue trade $52.83 $64.61 (18) (smaller commission per trade. have to make up in sucker volume) Wait, so I'm reading here that people are trading more online, they are paying less per trade on average, they are borrowing more and their balances are still going down? Wait, is SCH actually making less money per trade on average? Who is giving them all of that commission anyway? We all know that SCH has to recruit heavily to get more suckers (like me currently) to give them more money, so they can take out more margin loans, so they can lose more money in the stock market. We know that they are going to "blow out" their earnings (3-5 cents more..whoopie!. They are in for some real hard times in the future when those heavy daypeckers get cleared out. What I can tell you is that barring a good correction near term, which we all know we ain't gonna get, SCH is going to run up to about 140 pre split and then end up around 150-160. I think that my wife might be on to something. TSF