What are the chances Citadel will allow ETFC to get out of their hands? 1. Citadel average price for ETFC is around $2.50 (Please note I did not do exact math). Being an aggressive hedge fund, they would like to make at least 4-5 times profit. 2. Citadel has a fantastic deal to flow 50% of ETFC trades through their systems - and this is a profit making machine for them. Why do they loose this? 3. Citadel has agressive plans to become another Goldman. They need this brokerage platform.
1. Weak Economy - CEO cites weak economy for lower revenue. I do not believe in his theory. Though economy is weak acorss all globe, cell phone market is growing in double digits. Users in the Developed worlds are going for smart phones. User base is multipling in developing countries. If the market is weak, people should not have queued up for iPhones. 2. Competitive Edge - Is ANAD is losing its market to competetors? I see lot of new entrants in this market. Technology is rapidly changing. ANAD being old (started in 1984) , I suspect they are losing technical advantage and hence competive edge. I suggest do your research, prove my number 2 is worng and then buy.
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1. Citadel average price for ETFC is around $2.50 (Please note I did not do exact math). Being an aggressive hedge fund, they would like to make at least 4-5 times profit.
2. Citadel has a fantastic deal to flow 50% of ETFC trades through their systems - and this is a profit making machine for them. Why do they loose this?
3. Citadel has agressive plans to become another Goldman. They need this brokerage platform.
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2. Competitive Edge - Is ANAD is losing its market to competetors? I see lot of new entrants in this market. Technology is rapidly changing. ANAD being old (started in 1984) , I suspect they are losing technical advantage and hence competive edge.
I suggest do your research, prove my number 2 is worng and then buy.
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