Margin of Safety
Long only, deep value, special situations, medium-term horizon

OTC Markets Group: 10 Cents Of Growing Free Cash Flow Per Dollar

Introduction

OTC Markets Group (OTCQX:OTCM) is the dominant company behind the over-the-counter (OTC) market in the United States. The company runs an asset-light business with high margins, recurring revenue, and strong returns on its assets.

Over-the-counter (OTC) trading is done directly between two parties, without the involvement of any exchange. OTCM offers an inter-dealer quotation and trading system (OTC Link ATS), which connects the independent broker-dealers. OTCM has also established itself as the primary provider of OTC equity market data and has strong relationships with Bloomberg, Interactive Data, Factset, and other major data redistributors.

The only real competitor, OTCBB, seems to be in a terminal decline. The number of the securities quoted and the broker-dealers using that system...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details