Besides having a booming stock – which, after a nasty 50% mid-year drop, this week is breaking out to new all-time highs – an incredible trading platform that I use for my own trading and big time investors known for discovering undervalued smallcap stocks, this company has some serious growth. In fact, you'd be hard pressed to find another company in the finance arena with numbers that are even in the same ballpark.
Their November 2007 metrics show new accounts up 71%, total funded accounts up 171% to 55,000, retail DARTs (daily average revenue trades) up 321% to 45,100 and client assets up 154% to $2.62 billion – and compare favorably to their main competitor OptionsXpress Holdings, Inc. (Nasdaq: OXPS), a company that has quintuple the accounts, double the marketcap and juicier profit margins, but whose growth is much lower.
While the growth is definitely there, there's also value. At $17.83, this stock trades with a forward PE of 19 and analysts earnings estimates have been rising gradually. I love it, but we must remember that this is a very competitive field. Other online brokers like E Trade Financial Group (Nasdaq: ETFC) (well, that company's just a mess!), TradeStation Group, Inc. (Nasdaq: TRAD), TD Ameritrade Holding Corp. (Nasdaq: AMTD), Interactive Brokers Group, Inc. (Nasdaq: IBKR) and The Charles Schwab Corporation (Nasdaq: SCHW) will always be introducing new products, services, deals and commercials designed to lure customers away from competitors. And, just like TheStreet.com, INVESTools' success is dependent on stock market performance, so that's a huge risk.
But, most importantly, and as anyone who's seen me on CNBC can attest to, I love stock charts. If you look at this stock's historical breakouts, in February and October 2006, you'll see the stock ran up 30%+ within one month, both times. Third time's the charm? That's the main reason why I'm not only a client, I'm also a shareholder.
Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, the star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund.
While the growth is definitely there, there's also value. At $17.83, this stock trades with a forward PE of 19 and analysts earnings estimates have been rising gradually. I love it, but we must remember that this is a very competitive field. Other online brokers like E Trade Financial Group (Nasdaq: ETFC) (well, that company's just a mess!), TradeStation Group, Inc. (Nasdaq: TRAD), TD Ameritrade Holding Corp. (Nasdaq: AMTD), Interactive Brokers Group, Inc. (Nasdaq: IBKR) and The Charles Schwab Corporation (Nasdaq: SCHW) will always be introducing new products, services, deals and commercials designed to lure customers away from competitors. And, just like TheStreet.com, INVESTools' success is dependent on stock market performance, so that's a huge risk.
But, most importantly, and as anyone who's seen me on CNBC can attest to, I love stock charts. If you look at this stock's historical breakouts, in February and October 2006, you'll see the stock ran up 30%+ within one month, both times. Third time's the charm? That's the main reason why I'm not only a client, I'm also a shareholder.
Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, the star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund.
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Reader Comments (Page 1 of 1)
12-21-2007 @ 8:09PM
Reaper said...
this is some good stiff fun.
http://www.spymac.com/details/?2316383
12-22-2007 @ 3:36AM
nitadmin said...
Optionetics has better investor education seminars. Plus, they don't have their own Brokerage company like Investools.
http://www.optionetics.com/