Let’s analyze the timeline of events that led us here.
SCHW reduces their commissions to zero, the first real online brokerage firm to do so (Robinhood doesn’t count) — BOGGING competitors like AMTD who rely heavily on commissions for their bottom line. Desperate to retain customers, AMTD follows suit and their stock gets fucking hammered as a result.
With the stocks down from its highs and the company scrambling to replace 25% of its revenues, SCHW steps in and bids to acquire AMTD.
Machiavellian plan complete.
AMTD is up ~30% in the pre-market.If you enjoy the content at iBankCoin, please follow us on Twitter