Replies to post #104 on Charles Schwab Corp (SCHW)

[OldAIMGuy]

Hi S-11, Re: Shorting SCHW.................

P/E is rich, Price/Book is also. However, there's less than 1% of float currently shorted here. You're pioneering in taking that position.

https://finance.yahoo.com/m/548d19fc-e329-3dc0-b0e0-b5559816fa79/5-million-people-have-opened.html

They are adding new clients and the Ameritrade merger seems to be going well so far.

Compared to RJF, the P/E seems out of sight. However, Price/Book is not too dissimilar. RJF has nearly twice the short interest as SCHW.

I've had SCHW only since the AMTD merger. I'd owned AMTD for a very long time off and on. Latest ownership started in 2014. I trade around the core position as this histogram shows:



Sell into strength and buy into weakness. Currently with SCHW I've been selling into strength with nine small sales since the position started last October (merger time). The position value has nearly doubled since then. Cash/equiv. is now around 40% of position current value. So, in a way, I hope your prognostication is correct. I'd like to put that cash back to work with more shares at a steep discount.

Best wishes,
OAG