INVESTools Inc  (SWIM) Trade Now »     Rate SWIM  -  Discuss SWIM  -  Add to Watch List        

There is a substantial disconnect between ThinkorSwim Group’s (SWIM) intrinsic value and current market value. ThinkorSwim has ranked as the #1 or #2 software-based online broker and "best for options traders" by Barron’s for the past three years. The company has a best in breed trading platform with a differentiated approach to customer service (customer service staff comprised primarily of former Chicago Board of Options Exchange floor traders). Further, 80% of its daily average revenue trades are derived from the fastest growing and most recurring (think monthly expirations) source o

I have met a handful of their customers.

If your customers are beasts you are an overlord.

The recent drop, profit taking, something to be expected in an a services oriented model.

This is a volatile pick.

As a result of the recent drop a lot of the risk has already passed.

This will probably spike on the up side and offer a chance to take some early profits.

I would leave half the position open after taking the spike in Q3.

Leave the open half of the position for the long term.

reported 4Q earning of $0.26 and revenue $94.1 mln beats analysts poll of $0.20 and $85.3.

Even investool educational business segment looks soft, the thinkorswim brokerage services business provides prospect for strong growth. As general market sentiment weighted downward, it's hard to expect SWIM price to shoot up to full extend, but advance a couple of $ could be realized in short term. quick entry and exit market may be necessary.