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.
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!
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.
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.
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?