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CSFBdirect (NYSE: DIR) picked up 0.38 to 4.94 Friday on a reported joint venture with Hong Kong conglomerate Hutchison Whampoa Ltd.
The companies reportedly invested a total of US$20 million to provide an online service for private investors in Hong Kong, with each company contributing half. According to wire reports, the new venture will allow clients to open accounts and make stock transactions over the Internet, including via wireless devices.
Monday marks the official debut of CSFBdirect, which was previously known as DLJdirect. The Jersey City, New Jersey-based online brokerage had been a subsidiary of Donaldson, Lufkin & Jenrette Securities, which was recently acquired by Credit Suisse First Boston.
The firm has already started an advertising campaign designed to draw new customers and focus on the name change. CSFBdirect also plans to begin upgrading its services, introducing new features to its Web site and expanding its financial services to include planning, advisory services, and banking, said chief executive officer Blake Darcy.
"Online investors will have access to a combined force of 300 analysts covering over 3,000 companies worldwide," said chief marketing officer Debra Isenberg. "CSFBdirect customers will benefit from an increased opportunity to participate in initial public offerings and secondary offerings."
Before the acquisition, DLJdirect had more than one million customer accounts, representing some $28 billion in assets.
The firm recently announced an expanded alliance with America Online,
giving it a prominent spot on the personal finance channels of AOL,
Netscape.com and Compuserve. The company said the
agreement will allow it to reach a large online consumer audience.
