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Wednesday, 03/06/2002

SCH - Charles Schwab

Company Description

The Charles Schwab Corporation is a financial holding company engaged, through its subsidiaries, in securities brokerage and related financial services. Charles Schwab & Co., Inc. (Schwab) is a securities broker-dealer with branch offices in 48 states, as well as branches in the Commonwealth of Puerto Rico and the U.S. Virgin Islands. U.S. Trust Corporation (USTC, and with its subsidiaries collectively referred to as U.S. Trust) is an investment management firm that through its subsidiaries also provides fiduciary services and private banking services. Other subsidiaries include Charles Schwab Europe (CSE), a retail securities brokerage firm located in the United Kingdom, Charles Schwab Investment Management, Inc., the investment advisor for Schwab's proprietary mutual funds, Schwab Capital Markets L.P. (SCM), a market maker in Nasdaq and other securities providing trade execution services to broker-dealers and institutional clients, and CyBerCorp Holdings, Inc. (formerly known as CyBerCorp, Inc.), an electronic trading technology and brokerage firm providing Internet-based services to highly active, online investors.

The Charles Schwab Corporation, through Charles Schwab & Co., Inc. (Schwab), U.S. Trust Corporation, CyberTrader, Inc. and its other subsidiaries, provides securities brokerage and related financial services for 7.8 million active client accounts with $768 billion in assets. During the second quarter, a total of $18 billion net new client assets were added and 184,000 new client accounts were opened.

(Source: Charles Schwab)

Reasons To Invest

The major securities brokerage companies have been under pressure for most of the last year as trading volume dried up. Charles Schwab is taking steps to become leaner and meaner in an increasingly competitive market and in attempt to boost its sales.

The company is making progress into the higher margin businesses of investment advisory and diversified financial services. Schwab is targeting the high net worth client and is adding corporate services as well.

In addition, the company has been divesting non performing divisions. Its most recent sale of Schwab Canada to Scotiabank recently closed.

The transformation that Schwab has recently went through will lead to a greater focus on asset accumulation and generating greater profits from assets already in house. Recent cost reductions and price rises will lend to better margins this year and next.

DRIP Information:
Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment = Yes         Temper Enrollment Serv:  Yes

Min/Max Investment = $10 to $5,000/month

Reinvestment Fees -

Div : 0 
Cash: 0
Auto: 0

Transfer Agent:

Wells Fargo Bank

1-800-468-9716

Industry Group:    Broker/Dealer  52-week high=$23.18
Annual Dividend Per Share=  0.04  52-week low =$ 8.13
Last earnings 01/18   est = 0.08  actual = 0.08
Next earnings 04-20   est = 0.10  versus = 0.08
                                    P/E =   109
Analyst Ratings:
Strong Buy    =  2
Moderate Buy  =  4
Hold          = 14
Moderate Sell =  1
Strong Sell   =  0


 
 

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