Everybody loves to root for the underdog, especially when that underdog is making its ‘fans’ thousands of dollars…
What about a villain-turned-hero? Or a comeback? Depending on your preference, you can pick which storyline to focus on because this stock seems to have everything covered.
And you could be one of the first people to get in on this brand new security that appears to have huge potential.
Initial Public Offerings, or IPOs, offer investors a chance to make a lot of money depending on what follows in the days, weeks, and months after a new security becomes publicly traded.
And Virtu Financial, Inc. (VIRT) is a wonder of an IPO.
Here’s VIRT’s story in a nutshell:
As a market maker and high-frequency trader, VIRT had planned its IPO to launch a year ago. But, due to the timing of that IPO paralleling that of Flash Boys—Michael Lewis’ popular book about high-frequency traders rigging the market in their favor, VIRT faced enough opposition that it pulled its IPO.
A year later, VIRT successfully launched its IPO with its debut seeing gains of about 17%.
Comeback kid? Check. Underdog? Check. Villain-turned-hero? Depends in whom you ask, I suppose.
In any case, this is at least a surprising story for a company that few people really understand. And VIRT is already making its ‘fans’ or investors money through its first few sessions of trading.
So is VIRT a cash cow? It certainly could be. Of course, it’s far too early to tell if VIRT will be able to sustain the support and gains it’s experienced so far, but the potential is certainly there.
What I’ll be keeping an eye on is regulatory changes. Regulators are looking closely at high-frequency trading, and even the smallest change to the basic rules of this discipline could have a massive impact on VIRT’s way of doing business.
But if regulators back off and this stock continues to see favorable growth, as is explained in Code Breaker, VIRT could wind up being one of your favorite investments in the near future…
