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NeroTulip


Total Posts: 1013
Joined: May 2004
 
Posted: 2018-04-07 17:31
Bumping this up to ask a related question: is Virtu the only publicly-traded HFT firm? Are there any comparables?

How does it make sense for investors to buy a piece of Virtu? If trading profits increase, they can pay their employees more and leave very little profits to their shareholders. This would normally be prevented by a willingness from management to treat shareholders reasonably well because they may need them in the future to fund expansion. However, Virtu is such a cash machine that it may not need the shareholders to fund anything, and can therefore treat them pretty badly.

"Earth: some bacteria and basic life forms, no sign of intelligent life" (Message from a type III civilization probe sent to the solar system circa 2016)

HitmanH


Total Posts: 462
Joined: Apr 2005
 
Posted: 2018-04-09 09:09
Flow Traders in Amsterdam.

They are worth trading, not a long term holding stock - other than for the fact they are correlated to vol, and negatively to equity (and other) markets in general - which is odd of an equity asset

NeroTulip


Total Posts: 1013
Joined: May 2004
 
Posted: 2018-04-10 12:29
Thanks HitmanH, I hadn't noticed Flow Traders was listed!

After the February jump in their share prices, Flow has a PE of 41 and Virtu a PE of 52, so not really value stocks LOL. The correlation to vol is interesting though, at the right price.




"Earth: some bacteria and basic life forms, no sign of intelligent life" (Message from a type III civilization probe sent to the solar system circa 2016)
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