I currently own TradeStation Group (TRAD), an Internet securities, brokerage and software company based in Plantation. I already own my target position in TRAD, so I am rating this stock a HOLD.
TRAD benefits with market volatility. TRAD earns commissions when stocks, options, EFTs and more are bought and sold. TRAD customer base is largely active traders and day traders rather than to long-term investors.
TRAD software is feature rich and for serious traders only allowing faster buy and sells. The software is advanced with features like being ablt to create trading strategies or rules using historical or real-time quotes and then test their assumptions before making any investments. The application then automates the user’s rules and sends orders to the market.
“While most online brokers worry about too much volatility, historically, our trading volume correlates closely with intraday volatility since we cater to active traders who need volatility to identify intraday trading opportunities,” said Salomon Sredni, the company’s chairman and chief executive officer.
The negative ratings on TRAD are all based on Price Movement or Momentum and not fundamentals. For Example, Ford Equity Research rates the Stock Positive on Earnings Strength, Neutral on Valuation but VERY NEGATIVE on price movement. As a value investory, I am glad to be holding TRAD at the current price.
With Salomon Sredni’s statement, I am confident that TRAD will see $10 within the next 12 Months, so if you don’t own TRAD, a purchase at this point could result in a big gain within a year.