TradeStation Group, Inc. (TRAD)

rknapton (58.43) Submitted: 2/06/08 5:35 PM : Start Price: $10.41 TRAD Score: -4.29

This online brokerage is geared towards high volume traders. With the recent market volatility this is the brokerage to own since their clients are trading much more on this volatility.

Recently they reported record revenue, record NI, and record EPS. This will continue both due to the volatility in the market and their expansion internationally and into FOREX.

Giving it a 17 multiple for its 20+% growth and using the 08 estimates of $0.89 we get a price of:

17 x $.089 = $15.13

This is my low estimate because they also have 0 debt and about 100 million in cash.

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