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Wednesday, October 11, 2006

Cramer on Free Trading and Online Brokers Against Free Stock Trading

Today Cramer on his "STOP TRADING"segment on CNBC discussed the moves in online brokerage firms reacting to Bank of America giving free stock trading to those with $25,000 in accounts and after Zecco launched its free trading on Monday for $2,500 minimum accounts.

Cramer said these stocks are saying there is risk and he wouldn't discount the Bank of America (BAC) initiative. He said this "gamechanger" and B of A hid this initiative very well.

Cramer said this free trading is the evolution of things anyway. He said there may be a pause and a little bounce, but he thinks he would be a seller of the stocks.

Before Cramer came on E*Trade (ET) was down 8.6% at $22.35, TD Ameritrade (AMTD) was down 11.8% at $16.85, Charles Schwab (SCHW) was down 4.2% at $17.30, and TradeStation (TRAD) had recovered to being down only 2% at $15.88.

Cramer is also discussing Yahoo! (YHOO) and noted that the idea that the notion that the company isnt worth anything may be indicative of a bottom, and he even compared it to homebuilder stocks. He said he wishes Semel would resign from Yahoo! and it would take the stock to $28 if he did resign.


Jon C.Ogg
October 11, 2006
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