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Is Now the Time to Buy TD Ameritrade?

Shares of TD Ameritrade (NASDAQ: AMTD  ) are down around 4% during the last two days after the Fed announced that it wouldn't be tapering its bond-buying program any time soon. Motley Fool Analyst Tim Hanson thinks the reason that TD Ameritrade is getting punished so badly is because the company makes money from interest payments when customers don't use the money in their accounts; thus, if the Fed had tapered the bond-buying program, TD Ameritrade's interest rates would've gone up, and the company would make more money.

But Tim isn't worried about the recent decline -- he still thinks TD Ameritrade is fundamentally sound, and still thinks that, eventually, interest rates will go up. In the meantime, this may be an excellent entry point for long term investors.

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Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On September 23, 2013, at 11:34 PM, FM5 wrote:

    Note ...the stock is down because that got rid of the streamer platform , and will be going down a lot more till its back , the people with amtd are mad as hell

  • Report this Comment On September 24, 2013, at 9:15 AM, JH2010 wrote:

    Yes, Ameritrade is going down in more ways than one. They have removed their best trading platform that has been there for years. It's called Command Center and its gone. Ameritrade customers are up in arms about this and are moving their accounts away to other brokers. This is the Netflix (DVD saga) of brokers - stupid move.

  • Report this Comment On September 29, 2013, at 10:05 AM, Handworn wrote:

    At 23 to 24 times earnings, even with the decline and the rock-bottom interest rates, isn't this stock overvalued? It seems as though the market is expecting not only the end of QE but an actual rise in interest rates, with a concomitant rise in AMTD's earnings. As a float play, why should I not prefer insurance companies?

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9/30/2016 11:37 AM
AMTD $35.14 Up +0.67 +1.94%
TD Ameritrade CAPS Rating: *****