IBKR falling

Quote from Szeven:

I gotta put atticus on my buddy list so i can watch his posts. Ive already piggy backed his IBKR trades twice. Long as well 1500 19.57...
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You are @&^$ stupid. LOL
 
Quote from Szeven:

I gotta put atticus on my buddy list so i can watch his posts. Ive already piggy backed his IBKR trades twice. Long as well 1500 19.57...
More...

Jesse Livermore would say to never buy something because you think it is cheap but only if the time is right for it to move up. I do not know about the time line, but I do think IB is a good choice for a longer time period. I added to my IB position yesterday.
 
Quote from Catoosa:

Jesse Livermore would say to never buy something because you think it is cheap but only if the time is right for it to move up. I do not know about the time line, but I do think IB is a good choice for a longer time period. I added to my IB position yesterday.
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Another jack ass catching a falling knife. Good luck bubby. :cool:
 
lol, didnt expect so much anger and philosophy regarding my post! Added 500 more, just to keep everything honest, so 2k 19.47. Dont worry everyone, Im going to be ok!
 
Quote from John_Wensink:

Assuming that's true, which it might be do the math.

How many customers does IB have? What is the average revenue per client?

If they grow the business 50% a year, which on it's face seems impossible, they will have to grow the retail business exponentially to make up for the market making revenues.

Consider this environment, investors are going to walk away in droves because of these incompetant idiots on wall street. The piece of the pie of clients just got much much smaller.

Consider also that IB isn't equipped to handle the traditional retail client either.

That being said, if the question of IB's growth depended on the MM operations winding down and growing the retail client base by 50% a year, I would not be a buyer.

Ask anyone in any industry if they can grow their client base in a mature industry that is shrinking by 50% a year with no customer service and let me know what they say.
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They have the three important bits of customer service:

1) Their credit risk is low
2) They offer pretty much every developed world stock market, futures exchange, & currency.
3) They offer portfolio margin

If you know any other firms open to retail traders that offer these three, please tell me who it is.
 
In general, this is an IPO that never had a chance to get off the ground due to the present financial crisis. However, what worries me is that if enough traders close their accounts due to fear, their expected revenues could drop unexpectedly.
 
Quote from short&naked:

In general, this is an IPO that never had a chance to get off the ground due to the present financial crisis. However, what worries me is that if enough traders close their accounts due to fear, their expected revenues could drop unexpectedly.

Also the float only represents 1-2% percent of the company... not sure if this changes anything.
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I'll throw a different view on their potential customer base. Instead of leaving, what if they get more customers like me? Two months ago I pulled my IRA from a traditional fund and deposited (rollover) to a new IB account. They have several hundred in commissions from me already. Unfortunately, I'm flat, actually up about .03%, ... ok flat. Regardless, I'm better off than my fund would have been with InvesCo. IB has a new customer BECAUSE of the market conditions. Just another perspective.
 
Quote from short&naked:

In general, this is an IPO that never had a chance to get off the ground due to the present financial crisis. However, what worries me is that if enough traders close their accounts due to fear, their expected revenues could drop unexpectedly.
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The IPO was a Dutch auction, not a normal scam give cheap stock to your customers IPO, so the issue price was a lot higher than it would otherwise would have been. I think TP must have been close to making the Forbes 400 before the sell off.
 
Hi Rock,

You could very well be right. In fact, my line of thinking on this is very similar. I am simply playing devil's advocate.

Positive points:

1) Diversifications in their offerings (forex, futures, stocks, bonds, etc.) You could basically use them as a bank replacement.

2) Anal stance toward fund's safety/margin policy in a financial world that is falling apart due to overleveraging... (is this a possible moat)?

In the end is all comes down to earnings. Hopefully, this time with some guidance. ;)

Thoughts?
 
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