David Trone
David Trone
becoming bit industry online
The online brokerage industry is becoming a bit of an oligopoly.
capital game gives risk
It gives them a way to get in the game without having to put capital at risk.
low relatively risk
There are substantial synergies and relatively low integration risk.
balance billion bought early lately pace per quarter sheet since
Merrill has consistently bought back about $1 billion per quarter since early 2004, a pace that lately has been insufficient in offsetting balance sheet growth.
begins both company core effect expenses partial quarter realize result revenue rise
The partial quarter effect of the two acquisitions should result in a 17% sequential revenue lift, while core expenses (excluding any one-time restructuring charges) should rise about 23%, as the company only begins to realize both expense and revenue synergies.
case core increases quite rate
The rate increases have been going on for quite some time, and it really hasn't had an impact. And in the case of Goldman, you still have sustainable core revenues up very strong.
buzz capital effective exploring few fuller large last looking means media normal reports
Full-service firms are awash in capital and looking at means of effective deployment. Over the last few weeks, media reports have been fuller than normal with buzz of these firms exploring large deals.
thinking
When they say more than half, we're thinking most.
account adds asset both strong terms trading
This was a very strong report, both in terms of asset flows, account adds and trading activity.
coming position power recent
Fink is coming from a position of power because of his recent success.
deal earnings estimate few impact next seems ultimate
Financially, the deal seems to be of little impact. We estimate ultimate earnings impact as flattish for Merrill over the next few years.
financial incentives pushing time
The transaction makes a lot of sense strategically at a time when U.S. regulators are frowning upon financial incentives to brokers for pushing in-house funds.
advisory easily estimate firm highest million move places prior quarter revenue
Our estimate of $340 million in advisory revenue easily places the quarter as the highest for the firm post-bubble, and should move 2005 advisory revenues about 28% over the prior year.
quarter quarters results time
This is the first quarter in a long time where you will see year-over-year comparisons that are negative. And we'll probably see results for most of the quarters in 2005 being down on a year-over-year basis.