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More Consolidation In The Brokerage Space: PreMarket Prep Recap For Feb. 20, 2020

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More Consolidation In The Brokerage Space: PreMarket Prep Recap For Feb. 20, 2020

The big news on Thursday is Morgan Stanley’s (NYSE: MS) deal to acquire E*Trade Financial Corp (NASDAQ: ETFC) for $13 billion, or $58.74 per share. This marks the second major acquisition on the retail brokerage industry in the last four months, to go along with Charles Schwab’s (NYSE: SCHW) acquisition of TD Ameritrade (NASDAQ: AMTD) in November.

“This is not surprising at all,” PreMarket Prep co-host Dennis Dick said on Thursday’s show. “E-Trade was the target that was left. The only one left now maybe is Interactive Brokers, but I’m not sure they have as much customer base as E-Trade or Ameritrade, so I’m not sure they’re as attractive.”

The all-stock transaction is the largest takeover of a financial firm since the 2008 crisis. Shares of both companies immediately reacted to the news, with MS trading down as much as 6% and ETFC shares trading up near the takeover price.

“When you saw Ameritrade go off the board, you figured eventually probably E-Trade is going to be the next target,” he said. “So people are rewarded, if they were speculating, four months after the fact.”

For the full discussion on the deal click here.

Other Stocks Discussed On The Show

Some of the stocks also discussed include, with technical levels provided by Joel:

Featured Guests

Marc Chaikin, Founder of Chaikin Analytics

Guest BioAfter 40 years on Wall Street as a trader, stock broker analyst and options trader, Marc founded Chaikin Analytics LLC to deliver proven stock analytics to investors and traders, based on the Chaikin Power Gauge, a 20-factor alpha model proven effective at identifying a stock’s potential. Chaikin pioneered the 1st real-time analytics workstation for portfolio managers and stock traders, now part of Thomson Reuters’ institutional workstation, and developed computerized stock selection models and technical indicators, including Chaikin Money Flow, which are industry standards.

Marc’s full interview can be viewed at 17:22 in the video below or by clicking here.

Alan Brochstein, Author of "420 Investor" and founding partner of New Cannabis Ventures

Alan Brochstein’s 420 Investor is the go-to community for investors to learn, explore, and profit from the marijuana companies. The main goal of 420 Investor is to provide real-time, objective information about the top marijuana companies in the market in order to help investors capitalize on cannabis.Prior to earning my CFA charter in 1997, I worked in NYC for Kidder, Peabody, & Co. in bonds from 1986 to 1992. Later in 1992, I joined First Boston’s investment management subsidiary before becoming a portfolio manager with Criterion Investment Management in 1994 —co-managing $10 billion in fixed-income investments. In 2000, I made the move to stocks, joining a small firm in Houston as an analyst and portfolio manager. I remained at the firm until 2006, when I left to form my own business, AB Analytical Services—working as a research consultant for several investment advisors.

Alan’s full interview can be viewed at 36:24 in the video below or by clicking here.

Tim Seymour, CNBC’s Fast Money, CIO of Seymour Asset Management

Tim Seymour is founder and Chief Investment Officer of Seymour Asset Management (SAM). SAM provides both asset management and wealth management services for its clients, including direct investment and allocation to private equity and alternative assets. Tim is also the Portfolio Manager of the Amplify Seymour Cannabis ETF ticker: $CNBS.

Tim’s full interview can be viewed at 59:29 in the video below or by clicking here.

Michael Salaman-President and Co-Founder, GrowGeneration

GrowGeneration Corp. (“GrowGen”) is the largest hydroponic equipment supplier in the country, with 26 organic garden centers, across 9 states. We carry and sell thousands of products, from organic nutrients, soils, advanced lighting technology, to state-of-the-art hydroponic equipment used by commercial and home growers. Additionally, we carry propagation supplies, pest controls, environmental controllers and ventilation solutions. With a dedicated professional growing staff, we aim to service any size grow in order to lower costs, maximize yield, and provide facility or project consultations. We also offer greenhouse design solutions and harvesting solutions at any scale. Our team of experts are on call 24/7 to assist all growers.

Michael’s full interview can be viewed at 1:16:10 in the video below or by clicking here.

Watch the full show or listen to the podcast below.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google PlaySoundcloudStitcher and Tunein.

Meet the Hosts:

Dennis Dick
Joel Elconin

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

 

Related Articles (ETFC + SCHW)

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