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I don't have much to offer on fundamentals of SCH, but looking at the bigger picture, I bought the stock in Feb for $69, and plan to hold for long term. I have been customer for long time, and like the company. They pioneered the wildly successful Mutual Fund One Source program that has since been copied by so many Discount Brokerage firms. SCH was already thus, a leader in the discount brokerage field. Now with Internet trading volume exploding like a nuke, Schwab is number one in volume. Fools like the Top Dog and First Mover. When an industry is selling something and cannot hardly keep up with the demand, I want to own part of the top dog. This is the situation with Internet trading. I consider Etrade and Ameritrade etc too risky (besides not top dogs) for my blood. Schwab already has a solid business. Internet trading is just new cream on the strawberry Sunday.

They charge a little more than other I-trading brokers (more profit for shareholders!), but I tried the others, and service is lousy and you cannot talk to a human bean. They send you computer generated e-mail responses based on key words, which usually doesn't end up answering your questions. Since I am buy and hold, I will be a customer also, and pay a bit more. Numbers show that the majority of the Internet trading public agrees with me, and I think that the Internet trading volume growth curve is still in its bare-bottomed infancy

One last thing. I don't care about PE. If any of us didn't buy other Internet top dogs (AOL, AMZN, etc etc) long ago in compressed Internet-time, with seemingly outrageous PE's, we regret it now, don't we all, me included???? Fool on!

Carl in Sunny Phoenix
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