VIRT, or Virtu Financial, is "a leading technology-enabled market maker and liquidity provider to the global financial markets." who has had "only 1 unprofitable trading day in the last 6 years".
Take minute to understand what it means to be a "technology-enabled market maker and liquidity provider". They use high frequency trading to take small gains in arbitrage over millions of trades a day, a fundamentally neutral market strategy that, logically, allows them to turn very reliable and consistent profits. Where does that money come from? Me, you, and everyone else trading stocks and losing a penny when we hit the "market" trade button instead of "limit".... or when the market breaks during large news releases and liquidity dissapears..... or those times when markets ramp for seemingly no reason at open or close. Yes, Virtu is a pro in these situations and takes advantage of anyone trading in an illiquid market with lighting speed. Predatory and unethical? Ya I would say so, but man what a hell of a business.
If we can safely assume that this practice will stay legal for the next few years (not sure how safe this assumption is... if things really go south HFT will be largely under the gun) I think we are looking at a valuable prospect. Yes the risk is there because of the inherent sketchiness of the income source, but this company cannot lose until regulation steps in to stop them. So with that being said I think this is a strong buy for the short to mid term, adding it to my portfolio @ price: $22.29.
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