Investools SWIM break up value
anybody know how much their brokerage Think of Swim earns or how fast its growing? It might be interesting if the stock gets clobbered enough so that you can buy Think or Swim for whatever its worth,$3, 4 a share and get their investools segment for free. The baby boomers are retiring and there is the largest transfer of wealth in history I think about to happen. The question is if SWIM gets cheap enough and is it worth buying with investools at all. chances are this SEC inquire won't matter in a year and tons of money will be going into individual brokerage accts.I'm trying to figure out how much their brokerage Think or Swim is worth per share. I didn't see how to extract earnings from the 10-k with just revenues broken down
The whole company sells for
I figure Think or Swim alone is worth conservatively $6 to $8 a share based on its revenue of $110 million last year times 4. TD Ameritrades AMTD goes for 5 times sales and Charles Schwab (SCHW) is 5 times sales.
Thanks for following up on
Thanks for following up on the Think or Swim valuation. Too bad this company doesn't really have a moat. Given the current market, I'm trying to strictly stick to wide moat companies.
Look at the purchase price
Disclaimer: I am have options on SWIM
When I placed my option trade on SWIM a while ago, I calculated TOS based on the acquisition priced paid -- the then fair market value when Investools bought them out. If you believe TOS is a much better company today due to more accounts, more trades, etc, then the purchase price must be the floor value.
I let my (data) subscription to SWIM expire. I never made money with their 3 green arrow system and their stock search engine (over a 10,000+ stock database) failed to produce the results that I used to enjoy with Bloomberg. I will make two comments: (a) when new subscribers complain about how they didn't make money with SWIM's stock course, the typical answers were (i) take on more risky trades such as options or (ii) sink in more money by spending tens of thousands of dollars in more SWIM courses or (iii) or both and (b) people on SWIM really believed they had a system and believed they could make 4% a month each month!! Freaking unbelievable.