E-Trade buying Harrisdirect for $700 mln - Banks - Financial - Financial Services - Earnings - M&A

E-Trade buying Harrisdirect for $700 mln - Banks - Financial - Financial Services - Earnings - M&A

E-Trade couldn't buy AMTD for $3 Billion but the consolidation continues. E-Trade will buy Harrisdirect for $700 million cash.

As the BULL MARKET heats up, trading at discount brokers will heat up even more. It is fun for discount brokerage owners to hear Crammer's callers popping into and out of stocks.

The business is cut-throat. BMO Financial Group will book only a modest gain on the sale of Harrisdirect. The economies of scale are such that the "big boys" can cut gross margins per trade to the bone. The three way price battle has been between AMTD, E-Trade and Schwab. Fidelity has built a huge business by selling companies 401-K plans and then when the individual accounts grow large they convert many of them to trading accounts. Fidelity has not needed to cut brokerage fees as much because many of their customers are "locked-in" to Fidelity.

E-Trade and AMTD are the growth engines in the business. E-Trade is well known for its full range of services. One can get everything from credit cards to home loans through E-Trade.

RIDE THE BULL! AMTD and E-Trade have been rocket ships this year and indeed for the past three years. The next BULL STAMPEDE will "take them up another notch".