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This column was originally published on RealMoney on June 16 at 9:56 a.m. EDT. It's being republished as a bonus for readers.


TD Ameritrade

(AMTD) - Get AMTD IDEA Group American Depositary Shares each representing one Class A Report

worth? How about


(ET) - Get Energy Transfer LP Report

, or


( SCH)? These are tough questions. E*Trade and Ameritrade both sport forward price-to-earnings ratios of 17 to 18. Schwab trades for 24 times earnings.

These are more than twice what

Goldman Sachs

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trades for. The market seems to like the electronic trading model and dislike the investment banking/hedge-fund-buried-in-a-broker model.

Does that make sense? I don't know. I think that the online guys are experiencing fast growth but if the retail investor gets shaken out, you will be overpaying. I think the retail investor is here to stay, but that's not the case if we resume the downside and stay down for a long time.

I think the issue is that the other old-line brokers are just too cheap. I still don't get how the Goldmans and the

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( BSC) trade at 8-10 times earnings. That's just too cheap. These are premier franchises that are much better businesses that any of the discounters.

Would I swap the discounters for the old-liners? No; I would just recognize that the real bargains right now are with Bear and Goldman after those unbelievably good quarters.

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At the time of publication, Cramer was long TD Ameritrade.

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