I just read that article you linked and quoted from and it also said this: "Peterffy originally planned to sell just 5% of the company, but heavy demand pent up during the three-week road show convinced him to raise the stake to 10%. He still owns 90% but says there is a plan to sell an additional 12.5% of the company each year for the next eight years as he gradually unwinds his hold."
Selling company to public is the goal to raise $$ for expanding and acquisitions, so why is it bad? In general, market crowd do not remember what happened 3 days ago, so in 8 years (2015) this board will never remember IBKR IPO, even if board will exist. Take a look at another quote from same link ... Peterffy, 62, rang the opening bell of Nasdaq Friday from the company's Greenwich trading room. Characteristically, after the clapping stopped, Peterffy turned to his traders and said bluntly, "OK, guys, we can all get back to work now, I hope." ... Normally I would expect couple of days celebration after such event, but these guys are trading making over 1M per employee. It is not common... and should be obvious why.
Disappointment with price appreciation usually comes after great expectations, and it might be the case. Notice that volume and volatility is declining though...
why???????? Did anyone notice TRAD and OXPS nearing 52 week lows prior to this IPO, this IPO was HYPE, should settle down in the upper teens.
Dont be too fast with decisions.. Look: (source : http://www.fool.com/investing/general/2007/05/07/hal-9000-hits-wall-street.aspx ) # Interactive Brokers (Nasdaq: IBKR) represents a HAL 9000 nightmare for traditional brokers. The firm's highly efficient electronic trading system is growing at hyperspeed. Last Friday, the company raised a cool $1.2 billion as investors piled into its IPO. (Fittingly, Interactive Brokers used WR Hambrecht's online auction system to carry out its offering.) Hungarian-born founder Thomas Peterffy came to the U.S. in 1965 and started his career as a computer programmer. He had the visionary idea of applying his technical skills to Wall Street, and became a member of the American Stock Exchange in 1977. Interactive Brokers' platform now processes trades for stocks, bonds, futures, and foreign exchanges. It promotes both increased liquidity and rock-bottom fees for institutional investors, financial advisors and brokers. Over the past year, Interactive Brokers' revenues surged 58% to $1.7 billion. Because of its low cost structure, the company posted a stunning net profit of $734 million -- about $1.45 million per employee. The company faces serious competition from players like Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), and Merrill Lynch (NYSE: MER). Yet Interactive Brokers has serious advantages against these rivals; its platform is integrated with more than 60 exchanges, accounts for 15.9% of exchange-listed equity options volume worldwide, and handles real-time trading in 357,000 securities and derivatives products across the globe. The company's valuation equals approximately 16 times EBITDA. While this may seem frothy, it's not unexpected in the heady securities-exchange space. Look at Deutsche Boerse's recent $2.8 billion bid for International Securities Exchange Holdings (NYSE: ISE), which works out to 28 times EBITDA. On a relative basis, Interactive Brokers does look cheap. Individual investors should remember, though, that these kinds of stocks can be quite volatile, requiring a tough stomach for anyone who wants to hop onboard. # I hope this will helps [ Artes - Solar / Belgian link farm : http://www.linkcity.be/fr/nasdaq ]
The attraction of stating predictions of my fellow ET posters never ceases to amaze me. It's like moths and the light... some people just have to form opinions and predictions in a heartbeat. A stock is -5% in a week and now we get -50% predictions. If it were up 5% we'd get +50% predictions. A profitable company with reasonable growth, good margins, excellent scalability of business with low overhead and a decent barrier to entry that it can defend well for a while. On the other hand, the CEO wants to cash out and hates the entire Wall Street establishment and vowed they will not make a dime on his IPO. Maybe it's just me, but I would stay out of this one. Neither short nor long - the picture is just not clear enough. In fact, there are dozens of stocks that one could try to "predict" at this time with less risk of being completely wrong than this one. But as I said, it's like moths and the light
Good post. Cashing out the founder would not be on my list of things to do, unless it's at the right price. I think this stock is a buy at the right price, but with stocks at record highs and following an IPO which was both increased in quantity and raised in price, you'd have to believe there is a better opportunity somewhere down the road. I'm willing to wait for that....if it comes. Or, I miss the boat. OldTrader