optionsXpress Holdings Inc. (OXPS)

All Comments on OXPS

  • commenter
    Alan
    Brochstein
    Aug 07 06:38 AM
    My Website
    OptionsXpress Holdings: Overall Market Declines Could Spell Trouble [view article]
    Zachary, I'll take the other side, though I will admit that I am cautious on the name and have been trading my core position around (and sold some on the pop yesterday after buying Friday)>

    First, there are many investors who by mandate have to be invested and who can't stray too far from benchmark weightings. I think that this is one of the best Financials around: no credit exposure, no flat yield-curve headwinds and perhaps a beneficiary of the turmoil. Options and Futures have been gaining in popularity. It is naive to think that this means just going long call options. Hedging and income generation are the names of the game. Increased volatility could lead to growth in their business.

    Second, that pre-tax margin that you mentioned blows away that of other online brokers. The acquisition costs are significantly lower as well. The company is differentiated in its offering and has a very good reputation from what I have been able to gather. I find it very interesting that they have lower acquisition costs and higher margins than their peers by far in what is supposed to be a highly competitive industry. It is a sign that they have their own niche. In this environment, I wouldn't be looking for too many new entrants either.

    Third, insiders own a big chunk and haven't been selling. There has been a total of 700k sold over the past year - that's dollars not shares and less than $900k over the past two years. This supports my final point, that this baby is being built up to sell. The stock is cheap enough that cash bids would be accretive at prices 20-30% higher (even assuming no synergies). Another overlooked aspect of the company is its excellent balance sheet: no debt and some cash for continued strategic acquistions.

    Bottom line: I own it, though I am afraid that this bear market that is developing could prevent the stock from working well. Still, I don't see a lot of downside, so I am holding it as a long and hedging it with index shorts.     Reply
  • commenter
    borisb
    Jun 30 04:53 PM
    Jim Cramer's Mad Money Lightning Round Picks, 6/13/07 [view article]
    Jim your liver would beg to differ with your brocolli statement. Reply
  • commenter
    borisb
    Jun 30 04:52 PM
    Jim Cramer's Mad Money Lightning Round Picks, 6/13/07 [view article]
    Jim your liver would beg to differ with your brocolli statement. Reply
  • commenter
    Jim Eckerman
    Jun 16 11:28 AM
    Jim Cramer's Mad Money Lightning Round Picks, 6/13/07 [view article]
    Very interesting - especially Jack-in-the-Box is HOT and high tech Seagate is about as exciting as brocolli. Reply
  • commenter
    eblanch800
    Jun 14 11:22 AM
    Jim Cramer's Mad Money Lightning Round Picks, 6/13/07 [view article]
    good capsule comments on various stocks. Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 25 02:31 AM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    That closes this interactive Q&A. A big "thank you" to Ned Bennett of optionsXpress for his participation, and to Seeking Alpha's community for your great questions.

    The full list of links to Seeking Alpha's interactive Q&As is here.
  • commenter
    SeekingAlpha
    Editors
    Apr 25 02:27 AM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    That's helpful. Thanks again for your answers -- this has been great.
    Frank
  • commenter
    SeekingAlpha
    Editors
    Apr 25 02:26 AM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    I will try.

    In brokerage, given 4 calendar quarters, over my career there is always one spectacular quarter, two normal and one very slow. The analysts seem to think they will be the same as last year when modeling. And when the quarter does not shape up in the way they expect they do not adjust. It is not a science and a prediction is a “best guess”.

    I think there will be big growth in the foreign markets and in foreign participation in our market through on line delivery. I think “being there” and able to book business will be a huge advantage. The foreign regulators are not going to let their business go to unregulated firms. Our regulators are willing to help enforce the foreign regulations because our regulators want reciprocity.

    Hope this helps. Ned
  • commenter
    SeekingAlpha
    Editors
    Apr 24 02:37 PM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    Ned, in answer to my questions above you wrote:

    <blockquote>They seem to not understand the seasonal nature of our business. They seem to think every year repeats itself, like retailing.

    I must say that the licensing in foreign countries is big going forward. It is not as easy as it sounds.</blockquote...

    Can you expand on these points and explain in more detail please?

    Thank you,
    Frank
  • commenter
    SeekingAlpha
    Editors
    Apr 24 02:35 PM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    That’s a tough question. We do not give any specific guidance on the various segments of our business, as a corporate policy. So it is hard to determine what the street knows, understands and values. I think that overall they do a good job. They seem to not understand the seasonal nature of our business. They seem to think every year repeats itself, like retailing.

    I must say that the licensing in foreign countries is big going forward. It is not as easy as it sounds. Ned
  • commenter
    Ned
    Bennett,
    optionsXpres
    s
    Apr 24 02:03 PM
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    In my opinion, the major traditional firms are having an internal struggle, producers versus “self directed”. I think they are trying to transition to the fee based model. Once that is done they can offer the transaction model online as self directed. In a nut shell, they are afraid that their producers will get upset and leave if they “compete” for self directed.

    I think they will discover that every one with a computer has an online account. And as the online firms began to compete for “assets” and be successful it will wake up the “sleeping giants”. They will decide to participate. Charles Schwab is doing a good job of gathering assets. Just look at the offerings of the big traditional firms, they were second rate at best. They will figure it out. We are not that smart.

    Banks and brokers have always been like oil and water. As groups, we look at everything differently. And so each foray has been painful. But the banks are learning…a branch on every desk, and brokerage is a part of what can be offered. They will learn that price, even zero, means nothing when you can’t comfortably make the trade.

    But as online banking grows they will learn. Which ones… I am not in that line of work, but I think it won’t take too much to pick the aggressive ones. I think the successful one will buy not build so that they get the management to lead.

    Ned
  • commenter
    SeekingAlpha
    Editors
    Apr 24 01:33 PM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    Ned, thanks for doing this.

    You mentioned earlier that you thought the banks and full service brokerages would make a move to acquire the online brokerages. My questions are as follows:

    -- None of the full service brokerages have made a move so far. In fact, they even sold their online divisions. For example, Morgan Stanley sold Discover Direct. What makes things different for them now?

    -- If you had to guess, which banks do you think will make a move into the online brokerage sector in the next two years?
  • commenter
    SeekingAlpha
    Editors
    Apr 24 01:20 PM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    My pleasure.

    We are already in EU, Singapore and Australia, Members of the Australian Stock Exchange, and have just added futures, so…my feeling is “Global Platform” not far behind for us, too.

    The new products are sometimes challenging due to education. The on line platform is “self directed”. So as new products and new venues come about we need to help ensure that our customers are up to speed. As globalization comes everything will need to be valued in multiple currencies. Ned
  • commenter
    SeekingAlpha
    Editors
    Apr 24 01:19 PM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    Good response to the launch, our customers are still learning the product. It is quoted in the dollar, so it is a little different. We think it will have great retail appeal. Ned
  • commenter
    SeekingAlpha
    Editors
    Apr 24 01:17 PM
    My Website
    Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [view article]
    Futures are just another arrow in our quiver. We think there is a big opportunity to do for the futures trader what we are doing for the options traders. The market is not as large but neither is the field of competitors.

    It is also a step towards the small hedge funds and the overseas market. I believe that’s a great opportunity for us. Ned
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