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INVESTools: Another holiday gift for you

It's not easy to top a present like TheStreet.com, Inc. (Nasdaq: TSCM), but my next holiday stock pick does just that. I give you investor education cum brokerage firm INVESTools Inc. (Nasdaq: SWIM). It's a pretty cool business model that aims to teach people to invest via seminars, getting some juicy upfront fees and reaping the rewards over time through commissions and fees, if they are successful in their teachings.

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.

Continue reading INVESTools: Another holiday gift for you

TradeStation Group, Inc. (TRAD): Don't trade it from your portfolio

While market volatility is bad news for many companies, it is good news for TradeStation Group, Inc. (NASDAQ: TRAD), because it means heavy trading volume.

TradeStation is an online brokerage, and when people use its services to make trades, TRAD earns commissions. Its software is best-in-class and primarily caters to the savvy investor who buys and sells quickly. Traders use TRAD's software to evaluate data and create intricate strategies, allowing them to automate rules they've established. They then can trade through TRAD's brokerage arm on a diverse group of assets, including stocks, options, and futures.

The average user of TRAD makes more than 500 trades a year. However, as analysts have pointed out, its growth of new accounts has slowed, leading some to question if it can continue to be profitable in the years ahead. But TradeStation's software is far ahead of its competitors, and it is proprietary. The traders who use TRAD are sophisticated in their knowledge of the markets and rely on TradeStation's advanced software to help them make money. I can't imagine that TRAD is going to lose customers to other online brokerages. And as the volatility of the economy shows no sign of calming down, the number of trades we will see in the short-term by this type of fast trader will remain high, which will help TradeStation's profitability in the upcoming year. Its recent third quarter results showed that trading commissions were up 42% from last year, same period.

Continue reading TradeStation Group, Inc. (TRAD): Don't trade it from your portfolio

TradeStation: Time to buy

Despite solid performance from the internet-brokerage space, shares of TradeStation (NASDAQ: TRAD) have struggled over the last six months. TradeStation is a very unique broker because it offers traders the ability to automate and backtest their trading strategies.

TradeStation's stock is undervalued even though it has strong growth potential, positioning in a hot sector, and a new product that has the potential to serve as a catalyst in the next few quarters.

TradeStation currently trades for 17x earnings -- a multiple that is currently below the industry average of 22x earnings, the multiple of both TD Ameritrade (NASDAQ: AMTD) and Charles Schwab (NASDAQ: SCHW). While skeptics point to the lowly multiple of 15x earnings on ETrade (NASDAQ: ETFC), I counter their arguments with the simple fact that the company's balance sheet is loaded with debt.

Continue reading TradeStation: Time to buy

Analyst initiations 7-12-07: CELG, CLS, FLEX and SANM

MOST NOTEWORTHY: Celgene (CELG), Flextronics (FLEX), TradeStation (TRAD) and Assisted Living Concepts (ALC) were today's noteworthy initiations:
  • Jefferies is positive on Celgene (NASDAQ: CELG) over the longer term given the company's robust earnings growth potential and strong cash flow prospects, and started shares with a Buy.
  • Flextronics (NASDAQ: FLEX) was assumed with a Buy rating at Banc of America, who called the proposed acquisition of Solectron (SLR) a positive.
  • Friedman Billings believes TradeStation's (NASDAQ: TRAD) unique platform differentiates it from the competition and gives it a sustained advantage, starting shares with an Outperform.
  • Ferris Baker Watts initiated Assisted Living (NYSE: ALC) with a Buy rating, calling shares attractive...
OTHER INITIATIONS:
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Symbol Lookup
IndexesChangePrice
DJIA+28.5010,462.21
NASDAQ+6.962,176.14
S&P 500+4.581,110.23

Last updated: November 25, 2009: 04:06 PM

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