Next… 7 everything from stocks to commodi-
ties can now be traded online. A record number of
clients… rising rev-
enue and income
growth… and a 40%
gainer by January       Charles Schwab. You know the
name. It’s one of the most popular
and recognizable online brokers out
there. As far as online brokers go, its
commissions probably rank among
the highest—but there’s plenty to like
about its fundamentals and technicals.       Over the first half of 2005,
Schwab posted a revenue increase
of 5%, compared with the same peri-
od in 2004. Not mind-blowing, but
not too shabby considering it
endured a 28% decrease in trading
revenues due to price reductions.       What’s most impressive is that
the company’s net income grew 65%
versus a year ago—the thir  d highest
in its 30-year history.       And as trading volume continues
to pick up, Schwab will continue its
growth.       Back in July, rumors swirled that
Schwab was on the brink of being
bought out. But as CEO Charles
Schwab moved quickly to quell
those rumors, the stock withstood
the negative press and didn’t tum-
ble. Instead, shares shot up to a 52-
week high of US$13.91 on July 28.       Before July, the stock traded in a
range between US$8 and US$12 for
a year. But after the breakout in July
and the steady upward movement
since then, it looks as if the stock is making a move up. Now is the time
to buy.       As we get into the winter months
of trading, I wouldn’t be surprised to
see Charles Schwab trade for US$20
by the end of Jan. 2006.       Buy Charles Schwab & Co.
(SCH:NYSE) on dips under US$14.50
with a four-month target of US$20.       Want more M&A profit opportuni-
ties? Read the Red Zone report here: www.taipanonline.com/mna   Schwab (Year-to-Date) 15.10 14.40 13.70 13.00 10.20 05              Feb           Mar              Apr             May            Jun              Jul              Aug               Sep 12.30 11.60 10.90 9.50 0 20 40 13 EMA crossing the 50 EMA D Y N A M I C   W E A L T H Rewiring America: With optical revolution
underway, own the company leading the charge
to overhaul the communications network by Andrew Snyder       Although fiber optics cables don’t
sound too mind-blowing, recent
events just made the sector a whole
lot more interesting—and lucrative.       The devastating effect of
Hurricane Katrina has made a lot of
people sit up and realize the impor-
tance of having a modern and reli-
able communication system. That’s
because in the decades since most
utility grids were designed in America, a rash of major technologi-
cal innovations have rendered this
country’s communications networks
antiquated and run down. And utility
companies are scrambling to fix the
problem before it gets worse. America goes digital       For example, the number of
households with digital television— one of the fastest growing communi-
cations segments—is expected to
surge by over 50% in the next four
years. For old copper cables to keep
up with that kind of growth would
be nearly impossible.       If large communication compa-
nies like Verizon, Comcast, and
DirectTV want to grab a bigger slice
of the profits, they will be forced to
upgrade all of their networks to fiber www.taipanonline.com