Author Topic: IBKR - Interactive Brokers  (Read 164393 times)

AccentricInv

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Re: IBKR - Interactive Brokers
« Reply #250 on: June 29, 2016, 09:03:42 AM »
Random Question - Is there a way to get email alerts on press releases and SEC filings via IBKR's website?  They don't seem to have a subscription option, like many other IR sites.
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Travis Wiedower

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Re: IBKR - Interactive Brokers
« Reply #251 on: June 30, 2016, 06:27:41 AM »
Random Question - Is there a way to get email alerts on press releases and SEC filings via IBKR's website?  They don't seem to have a subscription option, like many other IR sites.

I have their IR page setup through changedetection.com. Though I just set it up recently so I'm not sure if it works or not yet since the IR page hasn't been updated the past few days. Some websites work great through changedetection and some don't.
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KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #252 on: July 21, 2016, 07:43:33 AM »
CEO mentioned some interesting growth stats on last call:

"by region, America is 12%, Europe is 11% and Asia is 29%."

"individuals were 12%, hedge funds were 15%, prop traders were 9%, advisors were 14%, introducing brokers were 29%."

(Believe this is YoY growth in # of accounts).

Stock sold off sharply after earnings. Now trading at 22.5x earnings (ttm).

kab60

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Re: IBKR - Interactive Brokers
« Reply #253 on: July 21, 2016, 08:06:52 AM »
I finally started a position. I really like the prospects and think there is a lot of optionality. I didn't however understand the remarks on the CC re. the market maker business and how they might build their own platform - first via a simulated try (questions asked by Rob Koehn). Anyone caught that?

fisch777

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Re: IBKR - Interactive Brokers
« Reply #254 on: July 21, 2016, 08:41:13 AM »
That was pretty out of left field and definitely a risk now. 
I think alot of investors were banking on them eventually special dividend-ing out the excess cash from MM unit and TP pretty much squelched that idea on the call, instead suggesting they might build MM into something totally different, ie Virtu-like.

frommi

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Re: IBKR - Interactive Brokers
« Reply #255 on: July 21, 2016, 09:22:51 AM »
That was pretty out of left field and definitely a risk now. 
I think alot of investors were banking on them eventually special dividend-ing out the excess cash from MM unit and TP pretty much squelched that idea on the call, instead suggesting they might build MM into something totally different, ie Virtu-like.

Its even worse, he sounded like he wants to built the cash cushion even further. So earnings are reinvested at a zero rate. I don`t know if its a good idea to subtract excess cash from EV in this case.

fisch777

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Re: IBKR - Interactive Brokers
« Reply #256 on: July 21, 2016, 09:35:46 AM »
Agreed, but he's always stated that excess cash is competitive advantage they would work to build/maintain.  I haven't ever backed it out of my model.

Travis Wiedower

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Re: IBKR - Interactive Brokers
« Reply #257 on: July 21, 2016, 09:50:30 AM »
Peterffy made sure to clarify it was an analyst that made the Virtu comparison, not him. I think his simple point was that they're looking at all options for the MM segment--he mentioned building it into something else, spinning it off, merging it with another company, and liquidating it. The market seems to be upset the MM didn't do well this quarter, but I've always valued it at its capital and that's it. Any profits are gravy as far as I'm concerned.
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kab60

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Re: IBKR - Interactive Brokers
« Reply #258 on: July 21, 2016, 09:52:05 AM »
While it doesn't look good optically with excess cash lying around I like it that way. It reduces  the risk of a blowup. Market maker equity is only around 12% of the marketcap, so in the grand scheme of things I don't think it really matters (I'm also not valuing it om an EV basis since I don't think the liquidity can really be considered excess). Not sure what to think about converting MM into something different, but I thought he sounded pragmatic about it which I like. I can't judge the probabilities of it working out, but hopefully I can somewhat judge the character and his incentives to maximize long term value. Couple with the whitelabel potential it might be another option? I mean, MM has existed since the seventies, doesn't it make sense that they can somehow utilize all the knowledge etc. they've accumulated? (And I admit again, I'm not even sure exactly what they're considering).

frommi

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Re: IBKR - Interactive Brokers
« Reply #259 on: July 21, 2016, 10:20:54 AM »
While it doesn't look good optically with excess cash lying around I like it that way. It reduces  the risk of a blowup.

As a client i agree and want to see more cash on the balance sheet.
As a shareholder i am still very unsure if this kind of capital allocation actually destroys a lot of shareholder value. When i look at other compounders capital allocation was always the most important part. Additionally i think that in the next big crisis when margin balances go down, earnings will take a big hit. (nearly 50% of normalized broker pretax earnings is interest income?)