SCHW
Schwab's plan to purchase just got a lot cheaper - In November, Charles Schwab announced plans to buy $TDA for a little over $26 billion in current market value. Not really talked about? The terms of the deal.
The acquisition, which plans to go through by Q4 of 2020, was basically a "stock swap". From Reuters:
"As part of the deal, expected to close in the second half of 2020, Ameritrade stockholders will get 1.0837 Schwab shares for every share held, or $52.23 based on Schwab’s Friday close. Schwab shareholders will hold 69% of the combined company, while TD Ameritrade stockholders will have an 18% stake. The remaining roughly 13% stake will be held by Toronto-Dominion Bank (TD.TO), TD Ameritrade’s largest shareholder."
As of today, we're running below the announced deal value, and it's not getting any better. Ultimately the strike price Schwab will pay may be at a huge discount to what they previously thought they were buying TD for.
SCHW - Looking Bullish Following Gap Up ConsolidationCharles Schwab gapped up back on November 21st, I believe that may have been related to the news that they were looking to buy TD Ameritrade. Since then, the stock has consolidated but managed to hold its gap level. The stock seems ready to exit an oversold condition while the RSI level held its 50 mark. The gap up in November has allowed a Golden Cross to occur on the daily chart as well.
I have some price targets noted on the chart. The green lines are standard Fibonacci levels (61.8% and 100% levels). The light blue line is based on a dynamic P&F chart but the price coincides closely with the Fibonacci Extension 50% level as well & I love when multiple analysis seems to corroborate each other. There is still some potential resistance until around $50.20 but if the stock price can break through that level there shouldn't be much built up resistance ahead.
SCHW IdeaSCHW broke negatively from a symmetric triangle to finish the 5th wave of the A wave. I am targeting the $35 region because it is confluent between a major resistance zone , the .5 fibonacci retracment level, the 1-1 extension from the 3 eave, and the-.236 retracment from the 3 wave. Target is the entire B wave.
ETRADE BANKRUPTCY.? ILLEGALLY PLAYING WITH MARGIN ACCOUNTSWe just heard a rumor today that supposedly came from an eTrade Employee / High Ranking Executive that the company has started deceptively and unlawfully manipulating trading accounts due to extreme losses within thousands of eTrade accounts.
What we heard...
AFTER A STOCK IS PURCHASED ON MARGIN, with a 25% Margin Requirement, days, if not weeks later, the account holder will receive an email thats says... "SPECIAL MARGIN MAINTENANCE REQUIREMENT CHANGE"
Within that email, eTrade bumps up the margin requirement on your trade from 25% to 45% and in many cases, we were told much higher.
After the account holder meets the so called fraudulent margin requirement, and then sells the stock...
eTrade then sends the account holder another email that says..."SPECIAL MARGIN MAINTENANCE REQUIREMENT CHANGE" and lowers the Margin Rate back to 25% - AFTER THE STOCK HAS BEEN SOLD BY THE ACCOUNT HOLDER
The SEC and DOJ needs to investigate eTrade, its Deceptive Business Practices, its Fraudulent Accounting Methods and its Books.
If you have an eTrade account, we suggest closing your eTrade account and transferring out to maybe Fidelity, Schwab or InteractiveBrokers.
Also, judging by the eTrade weekly chart, the stock looks ready to crash!
The stock is trading under the cloud and every indicator is negative.
Support might be somewhere around $30 but if it keeps sinking, and breaks down below $25, look out below!
On 2/5/2019, TD Ameritrade stock tanked...eTrade could be next to tank!