Gabelli Reports Earnings For TD Ameritrade Holding

In a report published by Gabelli, it believes the OptionsXpress/Schwab merger announcement is a positive for TD Ameritrade Holding AMTD as it consolidates a direct competitor, especially in the competitive active options trader segment. Gabelli said that it believes this transaction makes it more likely for a merger between E*Trade and TD Ameritrade since (a) Schwab will have already made a commitment to the OptionsXpress integration and (b) TD management will have fewer targets to consider. “AMTD trades at 17.5x 2011E earnings per of $1.20 per share and 9.5x 2011E EBITDA of $1.3 billion. The shares are trading at a 21% discount to our 2012 PMV of $27.” TD Ameritrade Holding closed yesterday at $20.96.