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Zacks.com Announces That Charles Norton and Allen Gillespie Highlight TradeStation Group, E*Trade, TD Ameritrade and Charles Schwab.


CHICAGO -- Charles Norton and Allen Gillespie, editors of the Supernova supernova, a massive star in the latter stages of stellar evolution that suddenly contracts and then explodes, increasing its energy output as much as a billionfold.  Stocks newsletter, say the all-clear will be sounded on a follow through day. Discover what that means and read about TradeStation Group, Inc. (Nasdaq:TRAD), E*Trade (NYSE NYSE

See: New York Stock Exchange
:ET), TD Ameritrade TD AMERITRADE Holding Corporation (NASDAQ: AMTD) is the owner of TD AMERITRADE Inc., the largest online brokerage in the world in number of online equity trades placed per day.  (Nasdaq:AMTD AMTD Arithmetic Mean Temperature Difference
AMTD Automatic Magnetic Tape Distribution
AMTD Affordability and Manufacturing Technology Demonstration
) and Charles Schwab Charles Schwab can refer to:
  • Charles M. Schwab, founder of Bethlehem Steel.
  • Charles R. Schwab, founder of the brokerage.
  • Charles Schwab Corporation, the brokerage.
 (Nasdaq:SCHW SCHW Silver Chitin Handwraps (Everquest gaming) ). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Highlights from the June 1 Featured Expert column by Charles Norton and Allen Gillespie include:

Programmed for Profit

Thanks to TradeStation Group, Inc. (Nasdaq:TRAD), stock brokers and institutional money managers can trade in real-time with sophistication so·phis·ti·cate  
v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates

v.tr.
1. To cause to become less natural, especially to make less naive and more worldly.

2.
 and precision from anywhere in the country - including their homes. TradeStation keeps them connected to Wall Street at all times. Headquartered in Plantation, Florida This article is about the city in Broward County. For other uses of Plantation, Florida, see Plantation, Florida (disambiguation).

Plantation is a city in Broward County, Florida in the United States.
, TradeStation is an electronic trading This article or section is in need of attention from an expert on the subject.
Please help recruit one or [ improve this article] yourself. See the talk page for details.
 platform that offers state-of-the-art direct market access (DMA (1) (Digital Media Adapter) See digital media hub.

(2) (Document Management Alliance) A specification that provides a common interface for accessing and searching document databases.
) order execution. For 15 years, clients have been able to design, test, optimize, monitor and automate their own custom trading strategies.

Tradestation's unique programming capabilities and commission structure distinguish it from the larger online brokerages and clearly target extremely active traders.

The plan is working: TradeStation had nearly 27,000 brokerage accounts Brokerage Account

An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf.
 at the end of the first quarter, a year-over- year increase of 12.5%. While the growth is impressive, the total number of accounts falls short of E*Trade (NYSE:ET), but TradeStation makes up ground in commissions. The average customer makes 740 trades a year, versus 15 for the typical E*Trade client.

More trading equals more revenue. The average TradeStation account delivers roughly $4,000 a year in revenue, 8 times the $500 that comes from the typical E*Trade customer. In a business where commissions account for 89% of revenues, that's a necessary edge over the competition.

TradeStation ranked higher in client evaluations than formidable peers like TD Ameritrade (Nasdaq:AMTD), Charles Schwab (Nasdaq:SCHW) and E*Trade. Financial publications consider it best-in-class. In March, the company received the highest rating from Barron's, and it's already won 11 other major awards in 2006.

Fundamentals

TradeStation's quarterly earnings growth has been phenomenal with year-over-year increases of 100% and 200% in the past two quarters. Sales jumped 36% over the same period last year. On an annual basis, earnings are expected to increase 31% this year and 17% next.

The company is also squeezing more profit out of each sale with both operating and net margins expanding year-over-year for three consecutive quarters. In the first quarter, operating margins were a whopping 61%. Net margins in the period were 37%, an increase of over 1,300 basis points from last year.

Read Charles Norton and Allen Gillespie's commentary about the Fed to learn what needs occur for a "follow through day" to take place and discover more stocks by clicking: http://at.zacks.com/?id=85

About Zacks Featured Experts

Successful investing requires professional advice from knowledgeable experts who can help investors achieve their financial goals in good markets and improve their portfolios, especially in bad ones. That is why Zacks Investment Research Zacks Investment Research

A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms.
 has assembled the best investment experts in the business to offer their powerful advisory newsletters on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc.

Additional recommendations from Zacks.com Featured Experts are highlighted in the free investment newsletter, Profit from the Pros. Each issue highlights several Featured Experts in this free e-mail See Internet e-mail service.  newsletter. Register for a free subscription to "Profit from the Pros" at: http://at.zacks.com/?id=86

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=87

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Jun 2, 2006
Words:774
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