Research on TD Ameritrade and BGC Partners: Stock Market Boom Pushes Investment Services Stocks Up

Feb 26, 2013, 08:00 ET from

LONDON, February 26, 2013 /PRNewswire/ --

With the stock markets touching a new high, brokerage companies are all set to benefit from increased interest in equity trading. However, the sector is still struggling to get past the previous meltdown and its profitability is still under pressure. The point is amply demonstrated by the results announced by leading broking firm TD Ameritrade Holding Corporation (NYSE: AMTD) which reported lower profits on a YoY basis. BGC Partners Inc. (NASDAQ: BGCP), on the other hand, reported higher revenue. The company also made acquisitions to boost its real estate portfolio. StockCall has posted free technical research reports on TD Ameritrade Holding and BGC Partners and these can be accessed by signing up at

BGC Partners Inc. Reports Higher Revenue

BGC Partners Inc.'s stock is on the roll. The company announced its acquisition of Sterling International Brokers Limited. The acquisition will provide BGC Partners with an opportunity to tap in to the acquired company's client-base and utilize its product portfolio. The company also reported its fourth quarter results. Its revenue for the quarter stood at $436.3 million, up 19 percent whereas its GAAP income jumped 262 percent to $27.4 million. BGC Partners also reported higher volumes due to the rebound in the financial services industry. BGC Partners Inc. technical report can be accessed for free by signing up at  

The stock grew 23 percent so far this year, after performing badly in the previous year. The stock also offers 11.29 percent dividend yield, despite keeping the dividend payment flat this time. BGC Partners is on the road to recovery, so its stock potentially has good upside left to it.

The company is undertaking a number of acquisitions as it recently announced two commercial real estate purchases of The Smith Mack and Fredrick. The company carried out these acquisitions through its subsidiary Newmark Grubb Night Frank. The acquisitions will help the company in expanding its foothold in the new markets. BGC Partners garnered considerable insider interest as its Director Albert Weis bought $75k worth of shares. Insider purchasing is generally a good sign for a stock.

TD Ameritrade Holding Corporation Attracts Hedge Fund Buying

TD Ameritrade Holding is one of the leading broking companies. The stock is up 16 percent so far this year and with the revived interest in equity trading, the broking house is all set to reap the benefits. The company serves both individual investors as well as registered investment advisors. The company recently launched its no-fee platform and boosted its portfolio of services. Download the free report on TD Ameritrade Holding Corp. upon registration at  

TD Ameritrade also saw good hedge fund interest as SAC Capital Advisors added to its position in the company during the previous quarter. The hedge fund currently holds 3.7 million shares of the investment brokerage company.

The brokerage firm reported its first quarter results and its profit stood at $147 million. On a per share basis, the company earned 27 cents per share, surpassing the consensus estimate of 24 cents per share. Its total income for the corresponding quarter of the last year stood at $152 million. TD Ameritrade also rewarded its investors by declaring 50 cents per share in special dividend. The company is looking to curtail its costs in order to improve its profitability and the effect is likely to be visible on its stock's future performance.

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