U.S. Brokers, Asset Managers & Exchanges: Weekly Capital Markets Conditions Update
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Price: $0.83 --0%
Rating Summary:
4 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
4 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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U.S. Brokers, Asset Managers & Exchanges: Weekly Capital Markets Conditions Update
Analyst, Roger A. Freeman, on E-BROKERS: AMERITRADE's (Nasdaq: AMTD) November monthly metrics came in line with our expectations. Trading activity (DARTs) declined 7% sequentially (vs. 5%-10% decline estimate). Client assets were flat sequentially and IDA inflows continue to be quite robust. Given the slower QTD volumes vs. our prior expectations, partially offset by better-than-expected IDA flows, we lowered our f1Q12E EPS from $0.27 to $0.26."
"TRADITIONAL ASSET MANAGERS: Traditional asset managers increased 0.2% on average last week, vs. the S&P500's 0.9% rise. Within the group, Franklin Resources (NYSE: BEN) rose 1.5% as the company demonstrated its capital strength, namely announcing a special dividend and raising its quarterly dividend. We continue to view BEN as attractively priced, at a 2012 P/E of 10x, vs. a peer group average of 12x. While we recognize current market conditions are weighing in on the global bond fund, we believe BEN ultimately deserves to trade at a premium to the group owing to its AUM diversityacross asset classes and geographies, as well as its conservative expense and capital management."
"EXCHANGES: Last week, the exchange and market structure group finished the week down 1.5% vs. a 0.9% increase in the S&P500. On Wednesday, we lowered our estimates for NYSE (NYSE: NYX) and Nasdaq (Nasdaq: NDAQ) given current volume trends after the companies reported November metrics. We believe the month of December will remain challenging for the broader exchange group given seasonal weakness and macro risks keeping investors on the sidelines. The week ahead should be relatively quiet with KCG scheduled to report November metrics mid-week. Outside of KCG metrics, we will continue to watch for news from the ongoing NYX / DB1 discussions with EU regulators as news reports point to mounting regulatory concerns."
Analyst, Roger A. Freeman, on E-BROKERS: AMERITRADE's (Nasdaq: AMTD) November monthly metrics came in line with our expectations. Trading activity (DARTs) declined 7% sequentially (vs. 5%-10% decline estimate). Client assets were flat sequentially and IDA inflows continue to be quite robust. Given the slower QTD volumes vs. our prior expectations, partially offset by better-than-expected IDA flows, we lowered our f1Q12E EPS from $0.27 to $0.26."
"TRADITIONAL ASSET MANAGERS: Traditional asset managers increased 0.2% on average last week, vs. the S&P500's 0.9% rise. Within the group, Franklin Resources (NYSE: BEN) rose 1.5% as the company demonstrated its capital strength, namely announcing a special dividend and raising its quarterly dividend. We continue to view BEN as attractively priced, at a 2012 P/E of 10x, vs. a peer group average of 12x. While we recognize current market conditions are weighing in on the global bond fund, we believe BEN ultimately deserves to trade at a premium to the group owing to its AUM diversityacross asset classes and geographies, as well as its conservative expense and capital management."
"EXCHANGES: Last week, the exchange and market structure group finished the week down 1.5% vs. a 0.9% increase in the S&P500. On Wednesday, we lowered our estimates for NYSE (NYSE: NYX) and Nasdaq (Nasdaq: NDAQ) given current volume trends after the companies reported November metrics. We believe the month of December will remain challenging for the broader exchange group given seasonal weakness and macro risks keeping investors on the sidelines. The week ahead should be relatively quiet with KCG scheduled to report November metrics mid-week. Outside of KCG metrics, we will continue to watch for news from the ongoing NYX / DB1 discussions with EU regulators as news reports point to mounting regulatory concerns."
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