Drip Portfolio Report
Monday, May 11, 1998
by Dale Wettlaufer (DaleW@fool.com)


Alexandria, VA (May 11, 1998) -- The next company we're adding to the group under consideration is Charles Schwab (NYSE: SCH), the number-one online brokerage and a leading discount brokerage company. The company is making inroads into the 401(k) administration market, which is a very rewarding business for shareholders if done well. I think Schwab can do it well. Here are the numbers for the company, through the end of fiscal 1997.

(Financial numbers in millions except for per share numbers)

Price/Valuation

Share Price.....$35 1/8
Market Cap.....$9,589.37
Price/Book.....8.37
Price/Tangible Book.....8.80
BVPS.....$4.19
Price/Assets.....58.18%
Price/Tangible Assets.....58.38%
EV/Tangible Assets.....58.38%
Price/Revenues.....4.17
P/E.....32.62
Amortization-Adjusted P/E.....31.03
Discount/Premium to Group.....60.6%
EPS.....$1.08
Cash EPS.....$1.13
Diluted Sharecount.....273.01
1998 EPS Estimate.....$1.21
1999 EPS Estimate.....$1.48
Multiple on 1998 Est......29.03
Multiple on 1999 Est......23.73
Amort-Adjusted Multiple on 1999.....22.88
Discount/Premium to Group.....52.3%

Capital Productivity/Efficiency

Asset Turnover2.....15.26%
Asset Turnover.....15.19%
ROE2.....30.91%
ROE.....29.40%
Amortization Adjusted ROE.....32.96%
ROA.....2.04%
ROA2.....2.051%
Net margin2.....13.44%
Net Margin.....12.79%
Efficiency Ratio.....79.89%
Interest Income/AEA.....6.45%
Interest Expense/AEA.....3.63%
Net Interest Margin.....2.82%
Net Share Buybacks (Including preferred).....$3.7
Dividends on Common.....$37.1
Retention Rate.....88.00%
Payout Ratio on AAEarnings.....12.00%
Owners' Yield.....0.43%

Balance Sheet

Cash & Nonearning Assets.....$1,195.6
Cash & Nonearning Last Year.....$1,017.6
Long Term Debt.....$361.0
Shareholder's Equity......$1,145.1
Last Year Equity.....$854.6
Tangible Equity.....$1,089.3
Last Year Tangible Equity.....$785.7
Tangible Assets......$16,425.9
Last Year Tangible Assets.....$13,709.87
Total Assets.....$16,481.7
Last Year Assets.....$13,778.8
Total Liabilities.....$15,336.6
Goodwill.....$55.9
Last Year's Goodwill.....$68.9

Leverage

Equity/Tangible Assets.....6.97%
Average Equity/Average Assets.....6.61%
Average Equity/Average Assets (Tangible).....6.22%
Assets/Equity.....15.13
Avg. Assets/Avg. Equity (Tangible).....16.07
LT Debt/Equity.....31.53%
Leveraged Capital Ratio.....7.22%
Tier 1 Capital Ratio.....7.72%
Total Risk Based Capital Ratio.....11.66%

Income Statement

Revenues.....$2,298.75
Interest Income (TTM).....$900.0
Interest Expense (TTM).....$546.5
Net Interest Income.....$353.6
Noninterest Income (TTM).....$1,945.2
Noninterest Expense (TTM).....$1,851.50
Net Income for Common (TTM).....$294.00
Amortization Adjusted Earnings.....$309.00
Noninterest income/interest income.....216.1%
Noninterest income/revenues.....84.62%
Noninterest income/NII.....550.19%
Amort. Adjusted Net/Revs......13.44%
Amortization of Goodwill.....$15.00

FoolWatch -- It's what's going on at the Fool today.


TODAY'S NUMBERS

*Please Note: due to a temporary glitch, the numbers are only partially available today. Complete numbers will be available again on Monday. Apologies for the delay!

Stock Close Change CPB $53 3/4 - 11/16 INTC $82 1/2 -1 9/16 JNJ $70 1/8 -1
Day Month Year History Drip 1.06% 0.66% 9.17% (7.03%) S&P 500 (0.14%) (0.46%) 14.04% 16.32% Nasdaq (0.87%) (1.09%) 17.68% 15.95% Last Rec'd Total# Security In At Current 04/13/98 1.000 CPB $53.690 $53.750 04/01/98 9.015 INTC $80.417 $82.500 04/07/98 4.099 JNJ $68.952 $70.000 Last Rec'd Total# Security In At Value Change 04/13/98 1.000 CPB $53.69 $53.75 $0.06 04/01/98 9.015 INTC $724.94 $743.72 $18.78 04/07/98 4.099 JNJ $282.64 $286.93 $4.30 Base: $1500.00 Cash: $386.10** Total: $1470.50

The Drip Portfolio has been divided into 63.266 shares with an average purchase price of $23.710 per share.

The portfolio began with $500 on July 28, 1997, adds $100 on the 1st of every month, and the goal is to have $150,000 in stock by August of the year 2017.

**Transactions in progress:

04/22/98: Sent $30 to buy more INTC.
04/22/98: Sent $70 to buy more JNJ.