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Thoughts on IBKR Q1/2019
$IBKR says they will need to and are working on a new product "tangentially" related to their core business to get account growth back above 20% 
🐰 in two or three months
Color on Tiger Brokers $TIGR an introducing broker potentially leaving their platform (<$25 million potential lost revenue). If $TIGR grows to a level sufficient to twist the cost/benefit in favor of leaving, $IBKRs equity stake will be worth substantially more.
$TIGR wild IPO, 3x since the offering, $3 billion market captilization. Mark-to-market gains and losses need to be adjusted out of earnings. Another $100 million next quarter potentially. Six-month lock up.
"9% of our commissions came in the last 12 months from the introducing brokers segment, even though they represent 32% of our accounts."
The shift to introducing brokers lowers commissions as a percentage of total revenue given the dynamics above
But on a long enough timeline $IBKR will continue to grow accounts (stock can re-rate if account growth gets above 20% again) and find unique ways to monetize these accounts while leveraging their low cost base.
Nothing orgininal in my thesis, grow accounts ➡ make money.
Nothing orgininal in my thesis, grow accounts ➡ make money.
