Over the weekend, I went in search of a new online broker. What I found was not only a better broker than I use currently, but also a compelling investment opportunity. Interactive Brokers (IBKR) ("IB" or "the company") is an undervalued online brokerage ("the brokerage") and market making ("the market maker") business, undergoing significant transformation which is causing shares to trade at a discount.
In particular, IB CEO and Founder Thomas Peterffy has indicated to the market that IB will wind down the market maker business if acceptable rates of return cannot be generated (generally defined as a 10% return on equity on recent conference calls), and return value to shareholders. I understand that the rise in...
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