TD Ameritrade (AMTD) is off about 4% on the session, which is the second straight day of this market meltdown. At $15.83, the stock is trading at just 12.2 times the high end of the fiscal 2007 (ending September) published earnings estimates. I maintain these numbers will prove conservative because trading volume remains active and the banking assets picked up through the Waterhouse USA acquisition will boost the company's overall margins.
With that in mind, I'm going to purchase 500 shares of Ameritrade after you read this. I will then own a total of 6,500 shares, or 2.8% of the overall portfolio. The stock has bounced a few times from the $16 level, and I'm making a bet that Ameritrade will once again catch a bid around these levels in the near term.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long TD Ameritrade.
Send email to james.cramer@thestreet.com.