Ameritrade (fka AMTD)

[OldAIMGuy]

In looking back on my AMTD holding I'm not unpleased with it even with the setback on commissions. I looked to see what Value Line had to say and they don't think it will have that significant an impact on earnings.

I trade around a core position buying from the scared and selling to the greedy. It's worked okay for me for a long time. I've traded various retail brokerages over the years and AMTD is my current holding.

AMTD History 
 Current Share Count                     +18.7% from Start 
 Current Cash in Reserve                  +8.0%   "    " 
 Current Price/Share                      -7.8%   "    " 
 AMTD Holding Value (Stock + Cash)        +9.0%

Value Line seems to think AMTD has a 3-5 year appreciation potential of $75 to $115. That equates to a 23% to 36% annualized return. With a trailing P/E of 9.2, current dividend of about 3.5%, a Price/Book Value of around 2.0 it's hard for me to resist adding to my position.

We'll see how all this "free commissions" stuff plays out. My guess is they'll add a little to margin and cut back a bit on interest on cash and won't even notice the change in income/share.

Best regards,
Tom