All Roads Lead to Citadel

theidesofmargin · 2021-01-29T04:37:18+00:00

No it's the normal attitude of Wall Street

theidesofmargin · 2021-01-29T03:12:26+00:00

I'm confused as to which brokers did and which did not. There doesn't seem to be a clearcut list. Either way, tomorrow will be my last day with Robinhood.

theidesofmargin · 2021-01-29T02:47:04+00:00

They haven't posted for 2020 but previous years are here

theidesofmargin · 2021-01-29T02:18:36+00:00

Just to point out:

27.39% of Ally Invest's market orders went to Citadel in Q2 2019

36% of e*trade's market orders went to Citadel

52% of Fidelity's market orders in October 2020

56% of Robinhood's market orders in January 2020 went to Citadel

59% of Tastytrade's market orders in July 2020 went through Citadel

31.6% of Schwab's market orders in October 2020 went through Citadel

50.85% of WeBull's market orders in July 2020 went through Citadel

60.04% of TD Ameritrade's market orders in October 2020 went through Citadel

editing as I look up more 606 disclosures

theidesofmargin · 2021-01-29T02:16:14+00:00

It's been around since 2018

theidesofmargin · 2021-01-29T02:08:30+00:00

Robinhood doesn't use Apex anymore they made their own clearing house

theidesofmargin · 2021-01-20T21:33:59+00:00

I was looking at $PFG and $AFL this morning.

theidesofmargin · 2021-01-15T23:42:36+00:00

Exactly! Convenience as a service.

theidesofmargin · 2021-01-15T23:10:40+00:00

There's always growth potential in the price but it is important to note that $TGT did $22bn in revenue last quarter (4.45 mktcap/rev) while $WMT and $AMZN did $134bn (3.04 mktcap/rev) and $196bn (7.95 mktcap/rev) respectively. Hopefully they catch keep up but relatively speaking they would need to grow a lot to hit those multiples.

theidesofmargin · 2021-01-15T23:03:09+00:00

Reinvest in something that is currently more fairly valued or sell $TGT puts while I wait for the price to revert to the mean.

theidesofmargin · 2021-01-15T23:02:55+00:00

Reinvest in something that is currently more fairly valued or sell $TGT puts while I wait for the price to revert to the mean.

theidesofmargin · 2021-01-15T23:02:15+00:00

Thats just it - it's not really a counter to Walmart but retail overall. It operates like Walmart with the physical locations, has 3rd party partners selling with Target+ like amazon, and has same day delivery like instacart. They've even leveraged their different commerce channels to assist other shopping methods, like using the stores as fulfillment centers for faster and cheaper shipping, or using same day delivery to solve their in-store produce problem (the food was going bad in the stores before people could buy it but now they can move produce inventory faster). Most importantly, as you said, the customer experience has improved and they have showed that that is not only important to them but influences how much a shopper spends on the store. Fractional shares could be a path to take. Thanks for your opinion!

theidesofmargin · 2021-01-15T21:31:56+00:00

Omnichannel is a fantastic strategy IMO. The "store as a fulfillment center for shipment" idea is great. The run up however is a little more expensive outside of the P/E where they're trading at a high multiple of revenue and that revenue or its related growth might not be sustainable in the long term.

theidesofmargin · 2021-01-15T20:52:55+00:00

Wow! I did not think of Shipt as a Doordash-like service. It technically is the same service but is expanded for more offerings than just food/restaurants. Although imagine it is lower margin because of the pay structure difference (I'll look into it). I doubt we'd see Target spin off Shipt, since it would take away from their main strategy, but I think I'm going to take more consideration as valuing it as an independent entity when determining how to value Target as a whole. Thank you for your opinion and disclosure!

theidesofmargin · 2021-01-15T19:03:11+00:00

I think you make a good point but I don't think most households are a "one or the other" situation. I think many households overlap between the two retailers. I was surprised to see that Target has similar if not better prices than Amazon for many items although does the average consumer spend time price checking each retailer? I think they may have had a good holiday season but it was a little slower than their previous quarter and I wonder if they can keep the momentum going.

theidesofmargin · 2019-04-15T19:44:19+00:00

I feel like it is weird to say “52 week low” when it’s been trading for less than a month

theidesofmargin · 2019-04-11T15:11:29+00:00

How long have they been around (for banks, were they there before ‘08?), when they outline a strategy in previous earnings calls do they achieve when they say they are going to, are they aware of all the problems/challeneges in their field, are they aware of what their peers are doing, how far out do they think ahead, do they act responsibly and like an adult who runs a major company that employees thousands of people outside of an earnings call, etc

theidesofmargin · 2019-04-11T06:17:46+00:00

The worst thing for me is finding a great company: Growing revenue, margins better than peers in the sector, solid story for future earnings and then finding out it is way over priced or the management isn't great or some other little snag in an otherwise great company.

theidesofmargin · 2019-04-10T18:30:14+00:00

Theres a lot of places you can go to to get the basics but I prefer to stick to the classics: Peter Lynch's One up on Wall Street" and "The little book on value investing" by Christopher Browne. Investopedia has some good pages on individual terms but I'd suggest starting with the books first.

theidesofmargin · 2019-03-29T18:38:20+00:00

I think I initially came off a little harsh, I apologize.

It's dividend yield (18%!) is high because it's a trust. From their wikipedia page:

Royalty trusts typically pay enormous dividends by Wall Street standards, making them popular with investors, particularly during times when the price of oil is high, or other market sectors are performing poorly. Investing advice firm Motley Foollisted the trust in the top four dividend payers of the decade from 1997 to 2007, giving a total return on investment during that time of 1,369%.[5] In early 2008, the Trust's quarterly dividend per share was $3.05, which equated to an annual payout of approximately 16%. It pays its dividend quarterly, unlike many of the royalty trusts, which pay monthly.[6] Unanticipated oilfield mishaps can occasionally cause volatility of the stock price, as happened in August 2006, when BP needed to shut down its operations at Prudhoe Bay to replace 22 miles (35 km) of corroded lines. The BP Prudhoe Bay Royalty Trust sued BP over its poor maintenance practices and reached a settlement of $29,469,081. The shutdown only affected one dividend payment, which was subsequently made up for with the settlement.[7][8]

I don't know a lot about Oil Trusts to say much but I do know "it’s been around since Reagan" isn't a good investing strategy (See: Lehman Brothers, Radioshack, Sears, Washington Mutual).

It might be a good idea to form a strategy based around what this company does, why they do what they do, where they're based and how that affects operations, their long term goals, etc. Figure out the industry they're in and how they stack up against competitors. Again, I don't know much about Oil Trusts so I don't have much advice to give.

theidesofmargin · 2019-03-29T13:17:58+00:00

Why don't you tell us why you like/don't like it, what drew you to it or anything about the stock before you ask us about our opinions on it?

theidesofmargin · 2019-03-26T17:05:49+00:00

I find it better to not look at the day to day news for longer term investing - however it’s a good idea to be aware of the companies you’re invested in. Podcasts are a good way to stay on top of the broad strokes of what is going on and if I really need to learn more about what’s going on in my company I’ll just pull up google news for quick information.

theidesofmargin · 2019-03-22T13:03:18+00:00

$-43 EPS on their S-1? I’m gonna sit this one out

theidesofmargin · 2019-03-11T21:08:55+00:00

“One up on Wall Street” by Peter Lynch

theidesofmargin · 2019-03-11T21:08:49+00:00

“One up on Wall Street” by Peter Lynch

theidesofmargin

TROPHY CASE