Dawg

The Long Case for ThinkorSwim Group

All of the above points have valiant merit. The very real problem that prevents this company from realizing its potential is the fact that the previous inept management and board of directors remains intact and in charge. The market is littered with value traps that feature wonderful, fast-growing businesses poorly managed and overseen by neglectful corporate governance. These stocks tease otherwise intelligent investors with their value discrepancies and future promise, only to eventually languish or depreciate due to management weakness and inability to strategically evolve. This is absolutely the case at SWIM.

Investools management led by Lee Barba and governed by a mostly pathetic board aligned only to continue their support of entrenched management will unequivally hinder this company's ability to realize it's full (or even higher) value. Shoddy practices, unecessary financial practices (led by a syncophatic and amateur CFO), and unfocused, egotistic marketing all more than offset the creativity and executional excellence of the ThinkorSwim management team, led by Sosnoff & Sheridan. Normally, any talented managment consultant would handily suggest an internal shift to the latter managers, but in this case they lack the both the DNA to step up and manage a publicly-traded enterprise and the spine to force aside Barba, Kane, and the bulk of the Board.

This present state of affairs will eventually lead to another bloodbath at the operational/growth/cos... allocation level. It's only a matter of time with such lame managment and lack-of-talent still at the controls. Sadly, TOS remains the best-of-the-breed among electronic options brokerages, but that position isn't permanent, nor is it easily defensible. TOS ultimately answers to people who plainly are so stupid and inept as to ignore the chance to step aside and let the value emerge, something their existing stakes would allow for a handsome reward, if they let it. Almost tragic, if you ask me!