Posts for Ticker ‘SWIM’

Niche Trading Firm Mergers Not Dead (AMTD, SWIM, OXPS, TRAD)

Money_stack_picIt seems that the appetite for online brokerage firms to do selective M&A deals is not entirely dead.  TD Ameritrade (NASDAQ: AMTD) has announced this morning that it is acquiring much smaller thinkorswim Group Inc. (NASDAQ: SWIM).  It is paying a hefty premium of $606 million for the company, but you also have to consider what the larger firm is getting for the acquisition.

Read More »

Posted on: January 8, 2009 – 9:18 am in Brokerage Firms, Mergers and Buy Outs, , , ,

Companies Not On SEC Short Sale Ban, But Should Be

Frankly, we think the ban on short sales is not the right way to run a free market.  But it doesn’t matter what we think.  These are the new rules, but they do not always make sense. Consider the stocks listed below that have many of the same issues as the financial companies but did not make the SEC’s list.

Read More »

Posted on: September 19, 2008 – 1:07 pm in Regulation, Short Interest, , , , , , , , , , ,

Investools Hit By Double Whammy (SWIM)

Investools Inc. (NASDAQ: SWIM) is under serious fire this morning from traders.  The company posted net income of $0.17 EPS, but First Call was at $0.21 EPS.  This is on a record revenue with a gain of 39% to $91 million. 

A miss on earnings is one thing, but this disclosure is something different entirely:

  • "The Company is cooperating with a non-public, informal inquiry by the SEC relating to representations by certain presenters in certain portions of their presentations at some of the Company’s seminars. The Company has been cooperating with and intends to continue to cooperate with the SEC. Because it is ongoing, the Company cannot predict the outcome of this informal inquiry at this time, and, as a result, no conclusion can be reached as to what impact, if any, this inquiry may have on the Company or its operations."

This stock rose exponentially over the last 4 and a half years and had gone more range bound over the last year-plus.  An SEC inquiry after a miss is not going to be welcomed by any stretch of the imagination.

Shares closed at $12.48 and the 52-week trading range is $9.29 to $18.23.  Unfortunately, that was the 52-week trading range.  Shares are now down almost 35% pre-market at $8.20 on very active volume of more than 500,000 with an hour to the open.

Depending on what these position claims are, this will either end up with a slap on the wrist… or a kick in the you know where.  So far traders are kicking.

Jon C. Ogg
May 2, 2008

Posted on: May 2, 2008 – 7:42 am in Brokerage Firms, Regulation, SEC,

Investools Files Shelf Registration (SWIM)

Investools Inc. (NASDAQ: SWIM) has filed to sell up to 3,083,178 shares of common stock in an open shelf registration.  None of the shares are going to the company as this was filed on behalf of the selling shareholders that were the owners of thinkorswim.  This will allow the thinkorswim owners to sell any, all, or none of the shares if they so choose.

At today’s prices, this would represent north of $33 million.  Investools market cap is $730 million.  At $11.06 and a $9.29 to $18.23 trading range, this offering is just a small drop in the bucket.

We frequently cover such issues around private offerings, management buyouts, private equity and more in our open email distribution list where we preview certain issues that will be in our twice-monthly Special Situation newsletter for our our subscribers.

Jon C. Ogg
March 28, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 28, 2008 – 4:31 pm in Financial Stocks, Secondary Offering,