Interactive Brokers (IBKR) is comprised of two businesses: (1) an electronic brokerage and (2) a market maker. I wrote in September that I thought shares were 20 to 30% undervalued, and included a potential catalyst in the form of a liquidation of the market maker business. The market maker currently holds ~$2.5 billion in excess capital, of which the public float's share is worth some $310 million. Note that the IBKR shares that trade publicly represent 12.4% of the enterprise, the remainder of which is largely held by CEO Thomas Peterffy. For more information, see the Q3 2013 10-Q.
Earlier in January, I advised readers to take some gains off the table in IBKR...
Only subscribers can access this article, which is part of the PRO research library covering 3,609 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: