This stock came up on my scans this evening for this first time. Sudden surge in volume with solid earnings report on OCT 25th. I think this is definitely something to keep a close eye on ;)
Earnings:
Revenues for the third quarter ended September 30, 2006 were $4.5 million, up from $1.7 million for the third quarter of last year. Net income for the third quarter increased to $2.2 million, up from $694,218 for the third quarter of 2005. Gross profit increased 153 percent to $2.7 million for this year's third quarter compared to $1.1 million for the same period last year. Diluted earnings per common share increased to $0.04 per share, on 51,680,993 diluted shares, for the third quarter of 2006, versus $0.01 per share, on 51,461,963 diluted shares, for the third quarter of 2005.
-fous
Don't own this one but looking good. May try to pick up around 1.35 in the next couple of days. ;D
chart
I'm in better late than never. Blue Sky. Bought at the 1.70 breakout. Thanks Fous!! >:D Trading a/h 1.78 3100 shares
Just wanted to give this move some more recognition. There is only 14.5 million float, 51 million fully diluted :o. Check it out. Definite demand for shares at the moment. 8)
In order to truly be "optionable", the stock is gonna have to stick above 2.50 and get listed. Shouldn't be hard considering they are in the industry and have the ins and outs reasonably within grasp. I speculate that if this goes well short term they will announce pursuing listing on the amex or another ex in the near future. I'm reaching here so don't count on it. Could happen though. Speculation seems to be looking forward to current quarter earnings.
Setting up. If it breaks 1.85. Blue Sky breakout, again.
Blue Sky! ;D
Impending Levitation 8) 2.02 break would blow out the channel. NO RESISTENCE :o Closed 1.99, 100k or so shares overhead at 2.00. Expect strong monday morning, because the ask was pulverized today.
Has anyone any experience with NO resistence? Dave? Check it.
nice pic...applaud
Thanks, but could use a little evaluation. I just don't know how high it can go? 26 p/e I guess if it doubles from the last peak we're looking somewhere around 3.00.
Just an update. OPBL is holding up nicely in an otherwise nasty market pullback. Holding in a tight uptrend channel. Golden crizzle about 11 trading days ago. 3 Magic line qualifier. Low float, over bought. Great growth and numbers. Blue sky just a few shares away. Feels like good support here. Next support 1.85 then 1.75. Resistence 2.02 and 2.08.
BREAKOUT ;D Get in where you fit in
Started good today. Thought there would be action after the breakout. I still believe the chart. But, as a precaution I lightened up half for a 20% gain. Sittin tight unless it breaks 2. I seem to be premature on my breakout calls. After review, I need to wait for the close. I am often calling breakouts on an intraday basis. But, what counts at the end of the day, is the end of the day. Whats working is the 50,90, and 200 sma on a 15 min. chart. You can easily see the rotation of trades. Entry's would have been good whenever the 50 touched the 90. Any dip down to the 200 sma would be optimal entry, currently at 1.88. Unfortunately, I don't think you'll see another tick down from 2.04
It broke 2 on Thursday and shook me out. Chart still strong. Declining macd is a concern though. Really overbought. 2.00 is on the lower trend line. Could see a pullback. Looks like a little tweezer top with a bearish engulfing.
Lower trend line 1.62, 50 day at 1.48.
I made a mistake 50 day is at 1.15. 30 day is at 1.48. Sorry.
OPBL is still going.
Great move today on huge volume :o
Long 5000 since 1.80...which was in Nov 06. Strong financials, rapidly inceasing trading volume due to energy volatility, and NYMEX just announced a 19% stake in the company today.
Any thoughts?
Thanks
Passing through 5$ premarket ;D
Hold it..its going to 10.
Long since 3.44
Great close today..up 27% with 10 times avg vol..very bullish
Most of the buying was institutional..which is very encouraging.
Seems co. is doing roadshows next week..
I am in for about 5K OPBL as well but paid close to $3.00 for it.
I think it has gone up to fast and might fall back to the upwards trend line ... before continuing.
I'm trying to decide whether or not to hold it for a long term trade or sell it probably tomorrow.
Long term, I really think a stock like this can do very well especially with the interest from NYMEX.
"OPBL.OB" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;)
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. ;)
Thank You....and good luck with all your trades....make some $$$ ;D
news update, chart update and company update = awesome >:D >:D
1)
Optionable Inc Enters Into New Agreement With Opex International Inc
VALHALLA, N.Y., Feb 05, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Optionable, Inc. (OTC Bulletin Board: OPBL), a leading provider of natural gas and other energy derivatives brokerage services, announced it has entered into an agreement with Opex International Inc effective January 31, 2007, to provide a floor broker on the floor of the New York Mercantile Exchange (NYMEX(TM)) to trade certain derivatives. As a result of this agreement, the Company also announced that it has terminated its agreement with Capital Energy Services (CES) effective January 31, 2007, whereby CES had provided that service previously.
President Edward O'Connor said, "We believe that this agreement with Opex International will further enhance the transparency of the Company, and it will help facilitate a higher level of control of our operations in the natural gas and crude oil brokerage business we support on the floor of the NYMEX."
The Company did not incur any early termination penalties in connection with the CES termination. The Company expects to file a Form 8-K shortly.
Optionable Reports Record Results for the 2006 Fourth Quarter and Full Year
Tuesday February 6, 4:01 pm ET
Revenue and Net Income Increase to All Time Highs
VALHALLA, N.Y., Feb. 6 /PRNewswire-FirstCall/ -- Optionable, Inc. (OTC Bulletin Board: OPBL - News), a leading provider of natural gas and other energy derivatives brokerage services, announced today record results for its fourth quarter and year ended December 31, 2006. The Company said that revenues increased 310 percent for the fourth quarter and 177 percent for the full year compared to prior-year periods, and net income reached all-time highs, increasing 859 percent for the fourth quarter and 393 percent for the full year compared to prior-year periods.
Revenues for the fourth quarter ended December 31, 2006, were $6.8 million, with net income of $2.5 million, or $0.05 per diluted share, up from $1.7 million in revenue, and net income of $262,769, or $0.01 per diluted share, for the fourth quarter of 2005. Operating margin increased to 58 percent for this year's fourth quarter up from 19 percent for the fourth quarter of 2005. The weighted average number of diluted common shares used in the computations was 53,020,901 and 51,750,647 for the fourth quarter of 2006 and of 2005, respectively.
Commenting on the results, Optionable CEO Kevin Cassidy said, "2006 was a benchmark year for us, with the launch of our electronic trading platform, OPEX®, as well as our Analytics service. We're particularly happy with these results as they are due almost entirely to our customers' positive response to the innovative and impeccable service we delivered to them. These results also demonstrate a very healthy and largely untapped market for our derivative brokerage services.
"The results for the quarter and the year were driven primarily by our voice-brokerage and open outcry service; however, OPEX, which we launched in July 2006, is beginning to add to our overall revenue mix. We expect that the efficiency of OPEX in executing trades, will cause its contribution to revenue to become a substantial portion of the mix as we progress into 2007 and even 2008, particularly as we begin to open up the market for our services."
Cassidy continued, "We intend to build on the success we've enjoyed to date, adding products and services beyond our capabilities in the energy derivative market and Analytics. We intend to look at expanding our relationship with NYMEX, and increase the traction of OPEX. In short, there are a number of strategic opportunities in front of us and we will examine each one thoroughly and carefully in order to continue building Optionable into a force in the derivatives brokerage business.
"During the past year we experimented with releasing the number of contracts traded on a monthly basis, but at this point we feel the information is more meaningful when it is part of a quarterly earnings release."
Revenues for the year ended December 31, 2006, were $16.1 million, with net income of $6.2 million, or $0.12 per diluted share, up from $5.8 million in revenues with net income of $1.3 million, or $0.02 per diluted share. Operating margin increased to 52 percent for 2006, up from 26 percent for 2005. The weighted average number of diluted common shares used in the computations was 52,559,445 for 2006 and 51,524,732 for 2005. As of December 31, 2006, the Company had cash and cash equivalents of $7.9 million.
The Company announced in January 2007 that three of its founding stockholders executed a binding term sheet for an agreement with NYMEX Holdings, Inc. (NYSE: NMX - News; "NYMEX") concerning certain cooperative technology initiatives, the acquisition of a 19 percent stake in Optionable by NYMEX from its three founding stockholders and Optionable's issuance to NYMEX of a warrant which would permit it to increase its ownership in Optionable.
The Company also announced in January 2007 that due to its rapid growth, it re-located its headquarters to larger facilities in Westchester County.
opbl was on fire >:D >:D
Tuesday, February 6, 2007
OPBL Conference Call
I have just finished listening to the OPBL conference call for the second time and everything appears to be very positive. I think that the call went fairly well for being their first CC, and although I don't think we got a lot of new information, the conference call should help to bring some new buyers into the fold.
First, I will start by commenting on the day's trading in OPBL, specifically with respect to the dip back to $5.45 this afternoon. This is a textbook example of how investors have become more and more fixated on the earnings estimate or "whisper number," and taking their eye off the bigger picture. The figure of 7 cents per share was widely circulated as an estimate for Q4, but of course, those estimates (mine included) failed to recognize that taxes would eventually kick in and take a chunk out of profits. Therefore, a selloff ensued after OPBL's supposed earnings "miss." Short term traders bailed out of the stock, creating an opportunity that I took advantage to add to my position in OPBL before the close.
As for the "miss," all profitable companies have to pay taxes, but taxes can sometimes be lumpy and therefore can cause volatility in the actual earnings number. However, they don't say anything about the underlying business, so they are best removed from the equation. Removing the taxes from OPBL's Q4 results yields earnings of 7.8 cents per share, which is in fact slightly higher than the "whisper number."
Today's action indicates the pitfalls of taking a short term approach to investing. Short term traders often become so fixated on the earnings number, they fail to look at the underlying condition of the business. Anyone with half a brain would realize that a company with quarterly revenue growth of 313 percent and net income growth of 859 percent is a special company, and that those types of numbers bode well for the future. Because short term traders are impatient and often fail to put in the required research, they somehow come to a different conclusion, and make bad trading decisions.
I am not going to rehash all of the numbers for OPBL, but rather, I will point out what I think are the most significant points. Obviously, #1 is the tax issue, which caused net income to be lower by about 3 cents. Taxes should be less of an issue going forward, as they are now likely to be fairly stable and have less of an effect on earnings.
As for other bits of information, OPBL confirmed that about 10% of their trading volumes are going through OPEX at the moment. I think that this leaves significant room for growth, and they specifically commented that they have seen increased interest with electronic trading from hedge funds even since the NYMEX announcement two weeks ago.
They have also had a successful release of their analytics tool, a value added program which allows institutions to access real time real time information across the entire scope of the futures/derivatives chain. I am not sure how prevalent this is with other brokers, but it sounds like a worthwhile service. Institutions are going to want to see all the bids and asks, and this could give OPBL an edge in gaining market share.
Clients now include Merrill Lynch, Wachovia, JP Morgan Chase, the Bank of Montreal, and many others.
As far as the balance sheet goes, OPBL increased their cash pot to $7.9 million, up $3.5 million for the quarter. While the cash pile is still small, such rapid growth (which will likely continue) will give them flexibility to increase the size of their staff and expand and establish a dominant position in other derivative markets.
As far as guidance goes, OPBL will no longer give monthly trading volume reports, but will provide more comprehensive volume reports each quarter. They did provide a bit of color on January by saying it had been a "good" month.
Referring to margins, they did note that margins had the potential to increase as more customers have become interested in using OPEX in recent months.
Regarding the deal with NYMEX, it is worth noting that the 10 million shares bought by NYMEX were purchased directly from insiders. I view this as a positive because it should reduce the itch for insiders to sell and cash in on their success. The option to buy another 20% of the company will also help in this regard, because it offers insiders a way of diversifying their assets without damaging the stock price.
On the questions front, the most notable part was probably the fact that their was a question from an analyst with Oppenheimer. The rest of the questions came from lesser known institutions, showing that the company is getting some notice at a bigger firm, but is still mostly unknown.
As far as 2007 is concerned, the only thing they said was that they thought that 2007 would be the year that validated their business model. I hope they're right!
Finally, I'd just like to address a few questions that I've been asked over recent weeks...
1) How much business do they lose from ICE because of the NYMEX deal?
I can't give any numbers, but this is a non-issue as far as current earnings are concerned. Because OPBL is dominant in natural gas and their clients are all in North America, it makes sense to go with NYMEX. Natgas is difficult to transport, so their is very little demand by US based companies to trade natgas with ICE in London. Because the US is a bigger market for natgas consumption, trading is more liquid on the NYMEX, so traders will also tend to stick to trading on the NYMEX. NYMEX is the dominant brand for natgas, so it makes sense to stick with them.
As far as other energy futures go, things that are more transportable will be more subject to trading on ICE, but as of now, these products make up very little of OPBL's revenue. While they are expanding into oil/electricity/etc, OPBL will not be affected by potential lost revenues from dealing with ICE. Perhaps there is an "opportunity cost," but for the most part this will be a non-issue because NYMEX is a dominant brand and should be able to hold its own with ICE. In any case, the ties with NYMEX should give OPBL an advantage in breaking into new derivative markets, as NYMEX will no doubt work with OPBL and advise them on capturing business in these new derivatives. The advantage of being an early mover and becoming a dominant player in NYMEX trading is significant, and I would rather see OPBL be dominant on one exchange rather than mediocre on two.
2) Does the agreement with CES (Opex Int'l) indicate that the company is set up to benefit the founders, and that shareholders are getting a raw deal?
No. The deal with CES to handle the floor trading is actually a good deal for OPBL, because it saves them from having to buy a seat on the NYMEX at a cost of almost $4 million. It also allows them to provide better service to customers by providing both electronic and OTC trading. This allows them to gain customers right now who are not able to trade entirely via electronic means. As the electronic market becomes more liquid, these customers will increasingly move to electronic trading.
I think it is also interesting that CES changed its name to Opex International yesterday. This indicates to me that they are linking themselves to OPEX, which will help to spread the perception in the marketplace that the CES/OPBL team can provide trading flexibility with regard to electronic and OTC trading. The more customers they can capture now, the better it is for OPBL in the long run, because trading will increasing become electronic. So the deal might look too good for CES now, but it is huge help to OPBL in the long run. Capturing customers now is key! After all, how often do you switch your broker?
http://otcspeculator.blogspot.com/2007/02/opbl-conference-call.html
Is a NYMEX-Optionable Buyout in the Works?
Monday February 12, 10:53 am ET
Ant & Sons submits: Optionable, Inc. , a leading provider of natural gas and other energy derivatives brokerage services, announced last Tuesday record results for its fourth quarter and year ended December 31, 2006. The company reported revenues that increased 310% for the fourth quarter and net income that increased 859%. Revenues for the fourth quarter ended December 31, 2006, were $6.8 million, with net income of $2.5 million, or $0.05 per diluted share. However, shares failed to rally much, probably because earlier in the year, the company reported that for the month of December, it executed a record of 1,780,659 options and swaps contracts for its clients. Therefore, the Street was not totally surprised by the company's growth and earnings numbers.
Yet, on Friday, shares unexpectedly rose $1.22, or 20.50%, to $7.17 on volume of 6.1 million shares compared to the daily average of 872,618 shares traded. The move could be attributed to speculation that NYMEX Holdings Inc. (NYSE: NMX - News) will increase its stake in the company. On January 22, Optionable announced that NYMEX, the world's largest physical commodity exchange, would purchase a 19% stake in the company. Given Optionable's expansion and growth in the derivatives business, it is certainly not out of the question that NYMEX would increase their stake in the company, or even launch an outright bid to take over the company before its shares become too expensive. Such a move would be the catalyst for further upside in Optionable shares that have already had a terrific run over the past six months.
http://biz.yahoo.com/seekingalpha/070212/26772_id.html?.v=1
Outstanding!! ;)
This was on the penny stock list by FOUS. - When it was $1.30! Now it is close to $9! That is why the smart $ is on the FOUS-man!
I was a great buy then and now! That Fous comes thru!
OPBL is a trading platform that specializes in trading certain deratives that the big boys like NYMEX want a part of - in fact, NYMEX bought a big chunk of OPBL recently. And it seems many others want some too.
http://www.3stocksonfire.org/trading/index.php?topic=7229.0
Look back at the old site for great analysis on a promising stock
fyi again:
Eye on Optionable
Wednesday February 14, 6:02 am ET
Think Intrinsic submits: Optionable is a provider of energy derivatives brokering services and has developed a leading electronic trade matching and brokerage system named OPEX. OPEX was launched in July 2006 and has experienced rapid growth which we expect to continue.
OPEX makes use of Nymex's (NYSE: NMX - News) ClearPort clearing platform, which has seen average daily volume increase an average of 130% over the last three years. The ClearPort growth and stunning growth at Optionable stems from the increased interest in trading energy derivatives.
From the 30 January, 2007 press release:
"OPEX(NYSE: R - News) is a real-time electronic trade matching and brokerage system designed to improve liquidity and transparency in the energy derivatives market."
The rest of this report focuses on the company rather than the technical details of OPEX. More information on OPEX can be found on the Optionable, Inc. website.
Technology Leader
I will be the first to admit that I could know more about the technology behind OPEX. This is why, when looking at Optionable, it is necessary to get a professional opinion about the prospects for company's OPEX trading platform. Fortunately, NYMEX just agreed to purchase a non-dilutive 19% stake in the company (they will purchase shares from the founders). In the company's first conference call, management stated that NYMEX will also be issued warrants to purchase additional shares of the company, but no more than a total of 40% of all shares outstanding. When the largest commodity exchange purchases a 19% stake and wants to work with Optionable to further develop OPEX, this serves as evidence to me that the technology holds significant promise.
Insider Ownership
This stock has gone from about $1 to over $6 in a matter of months but management has not sold, as far as I can tell, any shares on the open market. In fact, several executives have exercised options and held onto the shares. Even after the NYMEX agreement goes through, the top four executives will retain approximately a 26% stake in the company.
Earnings Growth
OPBL had earnings of $2.5M last quarter, up from $2.2M in the previous quarter. That is 13% sequential growth. Annualized (without compounding) that's 52% earnings growth. If we assume $2.5M per quarter for the next 3 quarters, that would put earnings at $10M per year. The P/E would be 34. There are a lot of assumptions baked into these numbers. And for many people, you will be in disbelief when I say I believe these numbers are conservative. The P/E of 34, for instance, assumes no further earnings growth, but we know that the industry is booming. Now I am going to go out on a limb and suggest that there are reasons earnings growth will accelerate. Optionable already has phone and open-outcry brokering operations. OPEX trades have higher margins and existing customers have and will continue to make use of OPEX, which will boost the company's margins. If OPEX is as good as the NYMEX agreement indicates, OPEX should attract first-time customers also. In summary, Optionable should continue to see growing sales and margins.
When OPEX contributes to Optionable's bottom line for several quarters, analysts will see that the growth is sustainable and it will be easier to extrapolate future growth rates. This could lead to P/E expansion (or contraction if you're a pessimist).
Other Value Considerations
Management owns a lot of this company and that should be very meaningful to any potential investor. Also, NYMEX's stake is most important because it symbolizes a willingness to further develop OPEX. Optionable is aligning itself with the biggest commodity exchange; this will be extremely beneficial for the company in the future.
Increased Transparency
Optionable previously brokered trades on the floor of the NYMEX through a company called CES, which is a separate company owned by Optionable's CEO. OPBL announced that it is no longer using CES, which eliminates a conflict of interest. Going forward, the company will use an independent company to execute trades on the floor of the NYMEX.
OPBL was a very small company only a few months ago and has made an effort to eliminate some practices that aren't considered appropriate for larger companies. I suspect that the increases in transparency are going to precede an application for listing on a major American exchange. This will attract more investors and potentially drive the price even higher.
Risks
No look at a company is complete without looking at the risks. OPBL is expected to grow very quickly and if it doesn't meet these expectations then we will see the stock price fall. I believe the biggest risk is a competing commodity exchange acquiring a company similar to OPBL, which will compete head-to-head. However, OPBL has NYMEX in its corner. So perhaps the worst case scenario is if NYMEX loses interest in OPBL and instead acquires a competitor. I will be looking out for the full agreement regarding the warrants and will pay attention to whether NYMEX cashes out, although I have always believed this was a strategic long term investment for NYMEX.
Potential investors must also consider that when NYMEX exercises its warrants there will be share dilution of roughly 20%.
Conclusion
Optionable is not a typical company. Its value lies in OPEX, its agreement with NYMEX, and its existing customer base that can be leveraged to drive revenue and margin growth. There is uncertainty regarding growth projections; this is undeniable. This is also not a typical company that we analyze either, but this is a great example of "value through growth." A solid underlying business model, promising technology, and management with "skin in the game" are the reasons I like OPBL.
http://biz.yahoo.com/seekingalpha/070214/27019_id.html?.v=1
OPBL background information:
http://www.allencaron.com/clients/backgrounders/opbl.pdf
I am new to this site, so if this has been covered could you indulge my question.
I'm long OPBL and the stock has had a really nice run the last couple of months a number of people, with opinions that I respect, have told me that this stock is going to $20.
They have had a lot of positive new lately.... good earnings, NMX bought a stake in the company, and their are rumors that they will soon be listed on an exchange.
Do you think $20 as a price target is in the realm of possibiliy? What price target would you give it?
if you dont know about opbl....here is a quick summary
Optionable, Inc. provides trading and brokerage services to brokerage firms, financial institutions, energy traders, and hedge funds in the United States. The company offers natural gas and other energy derivatives trading and brokerage services, OTC energy derivatives brokerage services, energy futures derivatives services, and services for lesser used derivatives, such as swaptions. It provides voice brokerage and floor brokerage services at the New York Mercantile Exchange and is developing an automated derivatives trading platform, OPEX. The company was founded in 2000 and is headquartered in Valhalla, New York.
Found some more to merge with this, and one thread was on the Stock Picking Board.
"OPBL.OB" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :'(
Thank You....and good luck with all your trades....make some $$$ ;)
Quote from: gman88 on March 01, 2007, 01:06:22 PM
I am new to this site, so if this has been covered could you indulge my question.
I'm long OPBL and the stock has had a really nice run the last couple of months a number of people, with opinions that I respect, have told me that this stock is going to $20.
They have had a lot of positive new lately.... good earnings, NMX bought a stake in the company, and their are rumors that they will soon be listed on an exchange.
Do you think $20 as a price target is in the realm of possibiliy? What price target would you give it?
I also believe that this is a great company but I wouldn´t invest now IMHO.
Around 6$ with a tight stop or around EMA 50 would be a nice entry but please do your own DD & money mgmt before investing.
cheers
O.
This stock came out with some news today.
http://biz.yahoo.com/prnews/070309/laf041.html?.v=87
Add swap contracts to it OPEX platform. The CEO said the
"The response to OPEX continues to be quite strong and we expect that the addition of the swaps contracts will further spur demand to trade through "
I really like this stocks.
nice bounce back from EMA 50 support
Optionable Announces Growth Initiatives
Thursday March 15, 4:05 pm ET
New Clients on OPEX(R)
VALHALLA, N.Y., March 15 /PRNewswire-FirstCall/ -- Optionable Inc (OTC Bulletin Board: OPBL - News), a leading provider of natural gas and other energy derivatives brokerage services, announced today that it has purchased two NYMEX trading rights, also called membership seats, for approximately $1.2 million through one of its subsidiaries, OPEX International, Inc. Optionable Chief Executive Officer Kevin Cassidy also noted that the Company has signed several new clients, is exploring strategic floor brokerage relationships as well as market maker incentive programs for market making firms in the energy sector. "The purchase of these trading rights is part of an overall strategy to expand our NYMEX floor operations as well as expand our product line both on the exchange and OTC," Cassidy said. "We believe this is a wise decision at this point because the cost savings over leasing the trading right will be substantial. Also, and very importantly, we will no longer be subject to increasing lease rate changes."
The Company also said that it has signed participation agreements with 30 new users for its OPEX® trading platform since the beginning of the year, all with blue-chip clients, and that requests for the use of the software are increasing. OTC-cleared trades that are executed are cleared through the award-winning NYMEX Clearport®. Cassidy said the strategic relationships the Company is exploring are with other OTC and floor brokerage companies.
Cassidy commented, "We will evaluate possible relationships with other OTC and floor brokers and determine what forms of strategic alliances make sense going forward. We would also evaluate and consider possible acquisition targets if they were the right fit for our growth strategy."
On the issue of market maker incentive programs, Cassidy added, "The Company and its management has not directly, or indirectly, provided compensation to its clients or their employees in the past but it will implement market maker strategies and programs which have been successful for other industry electronic platforms and exchanges. When properly and ethically administered, these programs can fuel a company's growth."
Chartwise, this is bullish.The wthite engulfing candle is a clear testimony here.
Fundamentally, we are expecting the closing of the 19% purchase of NMX tomorrow.All things being equal, this transaction will put paid to rumors that NMX may backout of the announced deal.
...my truck is empty, waiting to be filled.
GLTA...Jody
I hate myself for never buying this stock when i found it 1.30............... I love what i see here and will likely be looking into a position soon after further analysis 8) todays bullish engulfing at support is definitely a possible sign of a reversal from the recent bearish trend
-fous
Annual Report:
http://biz.yahoo.com/e/070323/opbl.ob10ksb.html (http://biz.yahoo.com/e/070323/opbl.ob10ksb.html)
One thing I didn't like to read was this:
"However, we believe that we may not be able to continue to grow the revenues at the same sequential rate as we did in the last quarter of 2006."
Thoughts?
Jody
niec move and again I have missed the entry point ::) ::) :'(
updated chart,
BO coming soon IMHO
8)
couldn't have called it better O ;D Applauds! You in OPBL.OB?. I've been watching for a position in OPBL the last several weeks though was hesitant to enter as the chart appeared to be forming a bearish head & shoulders chart pattern. Though todays breakout looks to me like that h&s aint gonna happen. Buying at the midpoint of todays candle might prove to be profitable.
-fous
in @ 6$ fous ;D ;D ;D
Holding up nicely and raring to go, imo.
strong close, tomorrow will be fun IMHO >:D
This stock is going to make me a lot of money!!! ;D
Look at the chart. It is about to blast off!
Optionable Announces Completion of Transaction for NYMEX Holdings to Purchase 19 Percent of Optionable Shares
Tuesday April 10, 5:41 pm ET
VALHALLA, N.Y., April 10 /PRNewswire-FirstCall/ -- Optionable, Inc. (OTC Bulletin Board: OPBL - News; "Optionable" or the "Company"), a leading provider of natural gas and other energy derivatives brokerage services, announced that pursuant to the binding term sheet announced on January 22, with three of its founding stockholders, have completed and signed definitive agreements with NYMEX Holdings, Inc. (NYSE: NMX - News; "NYMEX"), pursuant to which NYMEX has acquired 19 percent of Optionable.
ADVERTISEMENT
In addition to the 19 percent stake in Optionable acquired by NYMEX from the founders, the Company has issued a warrant to NYMEX that would permit NYMEX to increase its stake in the Company to 40%. The warrant is exercisable for 18 months at an exercise price of $4.30 per share. The agreements also provide for certain marketing and technology initiatives between the Company and NYMEX.
Pursuant to the definitive agreements, NYMEX is entitled to nominate one Director to Optionable's Board. The Company has increased the size of its Board from four Directors to five and elected Benjamin Chesir, NYMEX vice president of new product development, as a Director.
Optionable CEO Kevin Cassidy said, "The completion of this transaction is a major strategic step for the Company, allying us closely with the world's largest exchange for the trading of energy futures and options contracts. I am convinced that our close relationship with NYMEX will be an important catalyst in helping drive and accelerate our future growth."
NYMEX Chairman Richard Schaeffer said, "The closing of this agreement marks an important milestone for NYMEX. We are looking forward to working with Optionable as a key contributor to our future expansion in options markets."
nice i may enter in the morning i agree i think this thing can test new highs very soon 9 - 10 , will pick up some shares in the am
Optionable Inc is a small cap power play that with some very impressive growth and potential for a major role in the financial services industry. Optionable Inc is a provider of natural gas and other energy derivatives trading and brokerage services traded on the OTCBB exchange under the symbol OPBL.OB. We may look at OPBL and think it looks overvalued being that its trading at 59x's earning compared to the industries avg at 21.8. But considering its earnings growth rates there's a reason for OPBL's high earnings multiple. Currently OPBL's annual eps growth rate is at 392% compared to the industry average of 81% and the Qtr vs year ago qtr rate of 862% compared to the industries 110% which gives OPBL the right to trade at a higher multiple than that of its competitors. With future growth and release of the next couple earnings reports OPBL's high multiples will catch up with its valuation. OPBL also has a very attractive gross margin of 52% compared to the industries 22%.
(http://**********.net/forum/index.php?action=dlattach;attach=2263;image)
Looking at OPBL's ratios compared to it competitors we can see that OPBL is an upcoming player with the potential to stake a major claim in the financial industry. Not only by looking at OPBL's growth story, but more importantly the New York Mercantile exchange has recently purchased a 19% stake in OPBL.OB. The New York Mercantile exchange is world's largest physical commodity exchange trading on the NYSE under the symbol : NMX. Having such a large player take a significant position in a small cap company like OPBL places a lot of bullish power in Optionable. For one, NMX sees a lot of potential in OPBL's business model and made a recent significant investment meaning they expect a lot of growth for OPBL in the future. We could also speculate that NMX may even eventually completely buy out Optionable in the future as its role on the NMX trading floor expands which would result in a large rally for Optionables share price. It is also likely that we will see OPBL making the move to a major exchange soon as its growth expands as well as considering it is now partially owned by an $11.74 billion company, that being the New York Mercantile Exhange.
Optionable also has some speculative PR's in the recent weeks highlighted below:
-Optionable Announces Acquisition of HQ Trading
Monday March 26, 9:39 am ET
CEO Comments
"Optionable CEO Kevin Cassidy said, "The HQ Trading team is extremely well- respected in the industry and this acquisition extends our client base as well as providing us a critical mass entry in the crude oil options market."
Peter Holmquist, owner of HQ Trading said, "We are excited to join forces with the Optionable organization and grow the crude oil brokerage segment of the business. Optionable leads other energy brokerage firms with its bold agility in delivering services, either through OPEX, the NYMEX floor, or voice-brokerage. Additionally, OPEX will propel Optionable as the market leader in technology-based commodity derivatives trading."
Optionable Announces Growth Initiatives
Thursday March 15, 4:05 pm ET
CEO Comments: Purchase's 2 membership seats on the NYMEX trading floor.
"The purchase of these trading rights is part of an overall strategy to expand our NYMEX floor operations as well as expand our product line both on the exchange and OTC," Cassidy said. "We believe this is a wise decision at this point because the cost savings over leasing the trading right will be substantial. Also, and very importantly, we will no longer be subject to increasing lease rate changes."
The Company also said that it has signed participation agreements with 30 new users for its OPEX® trading platform since the beginning of the year, all with blue-chip clients, and that requests for the use of the software are increasing. OTC-cleared trades that are executed are cleared through the award-winning NYMEX Clearport®."
OPBL's financial condition is also looking very attractive with total assets growing nearly 4x's over the last 4 reported quarters compared to total liabilities only doubling setting OPBL's current ratio at an attractive 3.4 compared to the industry average of 2.3. Generally when a companies assets are double that of their liabilities, in other words, there current ratio is 2.0 +, then company is considered to have short term financial strength and the ability to meet its short term obligations. On top of their short term financial strength OPBL carries no long term debt so fundamentally OPBL is looking very healthy and set for future growth in eps/share price.
Technical Analysis:
OPBL has made an astonishing run up as high as 1200% in a little over 6.5 months so this is a very momentous trend. Recently after price hit its all time high of 9.10 in late Feb. OPBL has retraced in a short term down trend to retest support near $5/share which is when I began looking for a position. Though judging by the chart and me being a technical analyst at heart, it appeared Optionable was in the works of a bearish head and shoulders pattern with a chart confirmation on a breakdown of $5/share, so I held off for entry until I received further confirmation of a bullish reversal.
After riding support for around a week on the 50ema and right shoulder of the bearish H&S pattern. On 4/05/07 we had a very bullish white marubozu candle stick breaking out of the descending bearish channel as well busting through short term horizontal resistance at 6.88. The breakout from this descending channel as well as breaching the highs of the right shoulder of the bearish head & shoulders pattern indicates a failure of the H & S pattern and a confirmation of a continuation of a bullish reversal. Today's candle stick is a bearish shooting star so it is expected that there could be some short term consolidation before any continuation of the bullish trend continues.
(http://**********.net/forum/index.php?action=dlattach;attach=2264;image)
For profit targets, $9/share will be an attractive area as it will be a struggle to breakout as 9.10 is OPBL's all history high so I imagine there will be a battle near $9 with short term traders taking profits on the swing near this heavy resistance area. Though considering OPBL's growth prospects and NYMEX's stake in the company, prices above $9.10 in the near future are certainly not out of the question. Disclosure: I have a position in OPBL.OB at 6.85
Regards,
Cameron Fous
I joined the club. I made the mistake of not buying at 6.60 so now I have to pay a little more. It appears that it will be worth it though. If it does drop to 6.60 or so, I may think about adding some more. Good luck all!
9EMa as support ;)
Bought yesterday at 6.60$
This could be great news!
Optionable Announces Trading of NYMEX Light Sweet Crude Oil Options on OPEX(R)
Thursday April 12, 4:05 pm ET
VALHALLA, N.Y., April 12 /PRNewswire-FirstCall/ -- Optionable Inc. (OTC Bulletin Board: OPBL - News), a leading provider of natural gas and other energy derivatives brokerage services, announced today that NYMEX Light Sweet Crude Oil Options will be available on Monday, April 16, 2007 on OPEX, the Company's electronic trading platform.
Optionable CEO Kevin Cassidy said, "Not only are we pleased to offer NYMEX Light Sweet Crude Oil Options to our clients, we are especially proud to be the first one to offer it electronically, on OPEX, our real-time electronic platform."
Optionable President Edward O'Connor said: "Crude oil is the world's most actively traded commodity, and the NYMEX Division light, sweet crude oil futures contract is the world's most liquid forum for crude oil trading, as well as the world's largest-volume futures contract trading on a physical commodity. We believe that the Light Sweet Crude Oil Options will answer the needs of energy market participants."
Light, sweet crude oil is preferred by refiners because of its low sulfur content and relatively high yields of high-value products such as gasoline, diesel fuel, heating oil, and jet fuel.
http://biz.yahoo.com/prnews/070412/lath076.html?.v=86 (http://biz.yahoo.com/prnews/070412/lath076.html?.v=86)
out with 4% profit
fyi:
April 16, 2007 -- Commodity brokerage firm Optionable is on a tear with fast growth and a sizable investment from the Nymex, but a look behind the numbers reveals a history of extensive related party transactions and a key investor with a checkered legal background. Valhalla, N.Y.-based Optionable jumped into the spotlight recently when Nymex Chairman Richard Schaeffer took a 19 percent stake in the company and its revenues shot up by nearly 200 percent to $16 million from $5.8 million.
This has helped its stock more than double since the beginning of the year, to close Friday at $6.94.
But behind the commodity derivative brokerage's numbers is a significant reliance on related party transactions and on one major customer, which, when combined, account for almost 50 percent of the company's revenue.
Capital Energy Services, a floor brokerage jointly owned by Optionable President Ed O'Connor and Chief Executive Kevin Cassidy, accounted for 24.8 percent of the company's revenues last year.
The Bank of Montreal, according to Optionable's 10-K filing, accounted for another 24 percent of revenues.
The related party business proved to be more lucrative for Optionable, generating 77 percent gross margins, compared with 56 percent for transactions with nonrelated parties.
Sources told The Post that a single trader at BoM, commodity trader David Lee, was responsible for that business. Last year, BoM represented 18 percent of Optionable's revenue. A call to Lee was not returned.
O'Connor acknowledged the reliance on BoM and said it concerned him, but added, "a couple of other customers are becoming pretty key for us."
Hedge fund manager Mark Nordlicht founded Optionable in 2000, apparently with the backing of his father Jules, a veteran commodities trader, who now holds about 2.19 million shares.
The elder Nordlicht is also well-known as one of the principals of an 1978 illegal oil-trading trading ring federal prosecutors alleged sheltered $27 million in profits through manipulation of the oil futures market.
Nordlicht pleaded guilty to orchestrating sham trades, paid a $10,000 fine and was ordered to perform two years of community service.
Optionable's O'Connor said of Nordlicht: "He's a passive investor."
To generate more business, O'Connor said that Optionable is pondering handing out "incentives" - in the form of warrants to purchase the stock - to generate additional order flow for its electronic trading business.
As of February, according to its 10-K filing, the electronic trading part of its business amounted to 17 percent of over-the-counter revenues.
http://www.nypost.com/seven/04162007/business/its_all_in_the_family_business_roddy_boyd.htm
The article you are referring to was a lie. The NY Post removed it yesterday. Click on the link, to confirm it has been removed.
May take my small profit as well....radar'd....fell below the 9sma
Up almost 9% today ! ;D :o
The key is to breakout above 7 IMO. Then we're going to rock and roll to nine. This looks like it has great potential.
For the first time in a 2 weeks OPBL has found buyers. People want to get long ahead of next weeks earnings (AMC on Tuesday, May 1 ).
The Friday sell-off of OPBL.ob was large and appears to have happened due to the large losses at the Bank Of Montreal (BOM) which lost $404 million in natural gas trading.
http://www.antandsons.com/2007/04/panic-selling-hits-optionable-buying.html
Then this article provides much the same information:
"According to Optionable's 10-K filing, BMO accounted for 24 percent of its revenues last year. Investors took note of this, and sent Optionable's stock down $1.45, or almost 21 percent, to $5.56 yesterday. "
http://www.nypost.com/seven/04282007/business/banks_400m_loss_on_gas_bets_singes_n_y__firm_business_roddy_boyd.htm
So it looks like what happened is that the BMO was trading out of the money options for natural gas and there was not as much volatility in the price of natural gas as they had expected. This caused them big problems with the value of the options as they would obviously decline as the volatility decreased.
The bank closed out many of their options positions and plan to "scale back" options trading to a more sustainable level.
What does this mean for OPBL?
Well, it is possible that the BMO will stop using OPBL and that will mean a large hit to earnings. To be fair, although 24% of OPBL's revenue was through BMO last year, this is likely less than half that now. OPBL's business has been growing rapidly and most likely others will soon replace the business lost from BMO.
In the interim, it looks a little rocky for OPBL. Will the sell off continue Monday or will investors believe the drop was already too large?
In my calculation it is more than 24 %.
just be careful... ;)
fyi again:
::) :o
Optionable's BMO Bite
By Mark DeCambre
TheStreet.com Senior Writer
BMO Financial's (BMO - Cramer's Take - Stockpickr - Rating) natural gas blowup could yet singe commodities broker Optionable (OPBL - Cramer's Take - Stockpickr).
BMO, also known as Bank of Montreal, admitted Friday that it lost more than $300 million on natural gas trades that went bad.
Optionable, a Valhalla, N.Y., broker of energy options and derivatives trades to U.S. hedge funds and other financial institutions, said in a recent federal filing that BMO accounted for 24% of net revenue last year. But that figure could significantly understate the extent of Optionable's dependence on Bank of Montreal, its largest customer, for business.
Optionable is in the business of finding so-called counterparties for energy trades -- meaning it matches buyers with sellers. The broker charges a commission to both parties.
A spokesman says counterparty deals represent 75% of Optionable's trading revenue. In such transactions, revenue from any given party represents just half of the company's potential revenues. That's a key point in assessing Optionable's dependence on BMO.
A look at Optionable filings from last year show that net revenue for 2006 was $16 million. Taking Optionable's 24% figure puts revenue from BMO at $3.8 million. That figure, in turn, represents 43% of the firm's $8.9 million in 2006 brokerage fees, according to filings with the Securities and Exchange Commission.
But remember, there are two sides to any counterparty deal. So trading deals involving BMO appear to account for 86% of the firm's brokerage fees, even if half of those fees aren't actually from BMO itself.
An external spokesman for Optionable agrees that BMO's impact is likely more than the 24% when factoring in counterparties. He says counterparty trading, in which Optionable gets paid on both sides, represents about three-quarters of its trading revenues. Floor trading makes up the remainder, says the spokesman, declining to provide a further breakdown of Optionable's business with BMO on the floor trades. In floor trades, brokers are only paid once, by the exchange.
Toronto-based BMO, which has been one of the more aggressive energy trading banks of its size, has said that its losses will be recorded on pretax basis in the second quarter of its 2007 fiscal year. Although BMO chief Bill Downe described the losses as unacceptable, he didn't indicate that BMO would halt its energy trading operation, which has been a lucrative one before its blowup. Nonetheless, if BMO finds it necessary to pull back significantly, Optionable could face a need to diversify.
In April, the New York Mercantile Exchange (NMX - Cramer's Take - Stockpickr) acquired a 19% stake in Optionable. Optionable's first-quarter earnings call will be held after the close of trading Tuesday.
Shares rose 9 cents over the counter Monday to $5.65.
please be careful again ;)
We all agree (Shorts and longs) that Bank of Montreal has done a good deal of business with OPBL during its infancy in 2006 but the main point is not what has happened in the past but what is currently happening and will happen in the future.
There is no doubt that if in deed BOM decides to no longer trade through OPBL and OPBL loses 24% of the revenue they earned in 2006 in a matter of months that will impact "current" earnings to a certain extent. BUT THIS IS MISLEADING AS FAR AS THE TRUE 2007 IMPACT.
If you decided to invest in OPBL due to their relationship with BOM then you are very short minded. There is no doubt that OPBL has grown tremendously in just the last 4 months since 1/2007. Thus, as they have grown the BOM revenue has less and less impact on their overall earnings number. That 24% will drop to 20% then to 15% of overall revenue and so on as OPBL picks up additional clients and until BOM is only a small portion of the revenue. Who is to say they didn't pick up a few other large clients like BOM in the past 4 months!! BOM revenue may be under 10% of current on going revenue according to 2006 BOM revenue.
Once again this is a "hyper growth" story that will continue to unfold over the coming quarters.
REMEMBER: A company like this is not driven by what they did last quarter but what will be done in the quarters to come. (That is unless the current quarter is a total flop)
Tomorrow will be a much anticipated conference call and with the 24% short position this will either rocket up in the next few days after or dip down but with a floor as the shorts cover their positions.
Quote from: la-onda on April 29, 2007, 09:06:14 PM
In my calculation it is more than 24 %.
just be careful... ;)
I have told you
gap is closed ...fibonacci retracement 3.78 should be completed...in 3.88
hat a volatility Stock yupiie!--- at the end up to 4.29 back down under 4.00... sold so far....made good daytrades today....currently out...will we test the MA 200 at 3.17? ...crazy stock but good for daytrading made cash today.
Closed at 3.94!
Quote from: la-onda on April 30, 2007, 07:34:36 PM
fyi again:
::) :o
Optionable's BMO Bite
By Mark DeCambre
TheStreet.com Senior Writer
BMO Financial's (BMO - Cramer's Take - Stockpickr - Rating) natural gas blowup could yet singe commodities broker Optionable (OPBL - Cramer's Take - Stockpickr).
BMO, also known as Bank of Montreal, admitted Friday that it lost more than $300 million on natural gas trades that went bad. Optionable, a Valhalla, N.Y., broker of energy options and derivatives trades to U.S. hedge funds and other financial institutions, said in a recent federal filing that BMO accounted for 24% of net revenue last year. But that figure could significantly understate the extent of Optionable's dependence on Bank of Montreal, its largest customer, for business. Optionable is in the business of finding so-called counterparties for energy trades -- meaning it matches buyers with sellers. The broker charges a commission to both parties.
A spokesman says counterparty deals represent 75% of Optionable's trading revenue. In such transactions, revenue from any given party represents just half of the company's potential revenues. That's a key point in assessing Optionable's dependence on BMO.
A look at Optionable filings from last year show that net revenue for 2006 was $16 million. Taking Optionable's 24% figure puts revenue from BMO at $3.8 million. That figure, in turn, represents 43% of the firm's $8.9 million in 2006 brokerage fees, according to filings with the Securities and Exchange Commission. But remember, there are two sides to any counterparty deal. So trading deals involving BMO appear to account for 86% of the firm's brokerage fees, even if half of those fees aren't actually from BMO itself.
An external spokesman for Optionable agrees that BMO's impact is likely more than the 24% when factoring in counterparties. He says counterparty trading, in which Optionable gets paid on both sides, represents about three-quarters of its trading revenues. Floor trading makes up the remainder, says the spokesman, declining to provide a further breakdown of Optionable's business with BMO on the floor trades. In floor trades, brokers are only paid once, by the exchange.
Toronto-based BMO, which has been one of the more aggressive energy trading banks of its size, has said that its losses will be recorded on pretax basis in the second quarter of its 2007 fiscal year. Although BMO chief Bill Downe described the losses as unacceptable, he didn't indicate that BMO would halt its energy trading operation, which has been a lucrative one before its blowup. Nonetheless, if BMO finds it necessary to pull back significantly, Optionable could face a need to diversify.
....
please be careful again ;)
I hope nobody is still long invested ;)
just fyi:
BMO suspends ties with energy trader Optionable
Tue May 8, 2007 8:23 PM ET
VANCOUVER, British Columbia, May 8 (Reuters) - Bank of Montreal suspended its relationship with brokerage firm Optionable Inc on Tuesday, and confirmed two of the bank's commodities
traders are on leave pending an external review. Canada's fourth largest bank said it has also changed the operating structure of BMO Capital Markets "to provide additional oversight of
the commodities business," which would now report "within a business line most experienced in the trading and valuation of derivatives."
The announcement came just over a week after BMO issued a surprise warning that its second-quarter results would be stung by a pretax trading loss of between C$350 million and C$450 million caused by changing conditions in the energy markets.
Bank of Montreal is one Optionable's largest customers and the New York firm had been linked in published reports in Canada to the losses. The bank's statement did not elaborate on the nature of the review. The bank's statement confirmed press reports that two BMO traders had been placed on leave while the bank investigated the losses. The short statement did not say how long it expected the review to take.
No one was immediately available at Optionable's offices in Valhalla, New York, for comment on the BMO announcement.
When BMO announced the loss it said changing energy market conditions had hurt its positions in natural gas, and analysts said the news raised questions about the bank's risk management strategy.
hope my warning was taken seriously by all board members !!
:-X :-X :-X
Nymex Nails Optionable
By Mark DeCambre
TheStreet.com Senior Writer
5/10/2007 10:37 AM EDT
URL: http://www.thestreet.com/newsanalysis/wallstreet/10356098.html
Optionable (OPBL) investors just got burned again.
The Valhalla, N.Y.-based electronic options trader plunged for the second day in a row Thursday after a big shareholder said it would compete with Optionable in the commodities trading business.
After dropping 41% Wednesday, Optionable hemorrhaged 50% Thursday to $1.40. Shares traded as high as $8.63 earlier this year.
The latest blow comes from the New York Mercantile Exchange (NMX) , which said it plans to electronically trade options and futures in natural gas, crude oil, gold and silver via its CME Globex trading platform.
Nymex has a 19% stake in Optionable, which many observers believed meant that the exchange intended on either buying Optionable at some point or incorporating it into its own array of services. But Nymex's move to launch its own electronic service means that scenario is not likely.
The Nymex service is expected to launch sometime in late June, according to one observer. A call to Nymex was not immediately returned.
Optionable made a filing with the Securities and Exchange Commission yesterday warning that the new Nymex service could pose a threat to its options exchange, known as Opex.
An external Optionable spokesman declined to comment.
"We believe that some of the contracts trading on the CME Globex platform may compete with contracts trading on the company's Opex platform," the filing says. "The company is unable to quantify the impact of this potential competition on its business, including its future results of operations and financial condition."
Nymex's announcement comes just a day after BMO Financial (BMO) said it has suspended doing business with Optionable. BMO accounted for 30% of Optionable's trading revenues, according to the company's first-quarter earnings report.
How big an impact the one-two BMO/Nymex punch will have on Optionable remains to be seen, but it's not likely to be favorable to the company's nascent business.
be careful again!!
Optionable Inc. Sued for Securities Law Violations
Saturday May 12, 11:11 am ET
NEW YORK, NY--(MARKET WIRE)--May 12, 2007 -- On May 11, 2007, the law firm of Sarraf Gentile LLP commenced a securities fraud class action lawsuit on behalf of those investors who acquired the securities of Optionable Inc. (OTC BB:OPBL.OB - News) ("Optionable" or the "Company") during the period May 6, 2005 to May 10, 2007, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the Southern District of New York and names as defendants Optionable Inc. and certain of its top executives.
The Complaint alleges that Optionable and certain of its officers and directors violated the federal securities laws by making misleading statements concerning the Company's business prospects and growth. Specifically, throughout the Class Period, Defendants failed to disclose the following facts: (i) Optionable was engaged in improper deals with its biggest client, the Bank of Montreal ("BMO"); (ii) Optionable's business was extremely dependent upon BMO; and (iii) Defendants were able to retain BMO only because they helped its star options trader mismark options, falsify the trading price at which BMO traded those options, and hide massive losses incurred by BMO as a result of those trades. While the stock was trading at artificially inflated prices, as a result of this fraudulent scheme, Defendants sold shares of Optionable, for proceeds of over $28 million.
On April 27, 2007, BMO announced that it had lost between $300 to $400 million on trades executed through Optionable. In response to this disclosure, the Company's stock dropped 33%. Then, on May 8, 2007, BMO announced it was suspending all of its business relationships with Optionable. Finally, on May 10, 2007, it was disclosed that Deloitte & Touche LLP had conducted an audit of the trades BMO had conducted with Optionable and found that there had been "serious mismarking of the book of natural gas options." On this news, the price of Optionable fell further to $0.84, representing a total drop of nearly 90%. During the Class Period, Optionable stock traded as high as $9.10 per share.
Plaintiff is represented by the law firm of Sarraf Gentile LLP, which has extensive experience in the prosecution of class actions on behalf of investors.
If you bought the securities of Optionable between May 6, 2005 and May 10, 2007, you may, no later than July 10, 2007, move the Court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The Court must determine whether the class member's claim is typical of other class members' claims, and whether the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Sarraf Gentile LLP or other counsel of your choice, to serve as your counsel in this action.
&
Optionable in Legal Limbo
By Mark DeCambre
TheStreet.com Senior Writer
5/11/2007 5:10 PM EDT
Law firm Kahn Gauthier Swick says it believes there may be grounds for a class-action lawsuit against the troubled electronic trading platform Optionable (OPBL - Cramer's Take - Stockpickr).
Kahn Gauthier hasn't filed any such suit. But Canada's National Post reported Thursday that a forensic auditor hired by a former Optionable business partner found allegedly mispriced natural gas options. An external spokesman at Optionable declined to comment, but attorney Michael Swick at KGS in New York says such a finding could merit a shareholder lawsuit.
The National Post reported that BMO (BMO - Cramer's Take - Stockpickr - Rating), the big onetime Optionable customer that suspended business with the firm this week following a huge loss on natural gas option trades, hired Deloitte & Touche to look at the firms' dealings. The Post report indicates that forensic auditors at Deloitte believe there was a discrepancy in pricing of natural gas options in which Optionable participated.
Swick says that could give shareholders of Optionable grounds for a suit against the firm, whose shares lost more than three-quarters of their value this week.
"They weren't reporting the actual trade value," says Swick, referring to the Deloitte claims reported in the National Post. "Looks to me like there was some conspiracy between Optionable and the BMO traders to hide the losses."
A BMO spokesman in Toronto declined to comment.
A discrepancy in pricing could imply that the broker, in this case Optionable, may have corroborated prices to support those that BMO placed on its natural gas options contracts, says one commodities trader. Valhalla, N.Y.-based Optionable has had perhaps the worst week on Wall Street. After dropping 41% Wednesday, Optionable lost more than half its value Thursday to close at 85 cents. Shares traded as high as $8.63 earlier this year.
The BMO mess isn't Optionable's only headache. The New York Mercantile Exchange (NMX - Cramer's Take - Stockpickr) said Wednesday it plans to electronically trade options and futures in natural gas, crude oil, gold and silver via its CME Globex trading platform.
Nymex has a 19% stake in Optionable, which many observers believed meant that the exchange intended on either buying Optionable at some point or incorporating it into its own array of services. But Nymex's move to launch its own electronic service means that scenario is not likely. The Nymex service is expected to launch sometime in late June, according to one observer. Nymex also has warrants to acquire up to 40% in Optionable. Those warrants are well out of the money at its current trading price. Nymex dropped its bombshell just a day after BMO's business suspension announcement. BMO accounted for 30% of Optionable's trading revenue in the first quarter. The situation appears to have Optionable a bit worried. It is hiring a crisis management firm and asking lawyers if it has grounds for its own suit against BMO, according to a report by Toronto's Globe & Mail.
:-X :-X
la-ondo:
These 2 law firms that are filling suit are known "ambulance chases" in the securities industry. A quick search of google turned up the following:
Sarraf Gentile LLP:
http://newsblaze.com/story/2006042815035800002.mwir/topstory.html
http://findarticles.com/p/articles/mi_m0EIN/is_2005_Sept_14/ai_n15389972
http://www.marketwire.com/mw/release_html_b1?release_id=125940
http://www.seomarketwire.com/0504/20050428T224500Z-085665.html
http://www.feedsfarm.com/article/e685b1910f91601b9933c43a8e17cd3b4e0e61eb.html
http://www.seomarketwire.com/0504/20050426T130000Z-085334.html
and many more...............
Kahn Gauthier Swick:
http://www.feedsfarm.com/article/95f1e4bdc5205f0d3b1694e1060f1be9cc096275.html
http://www.marketwire.com/mw/release_html_b1?release_id=249927&tsource=3
http://www.kgscounsel.com/case/case.asp?lngCaseID=4939
http://www.marketwatch.com/news/story/investor-notice-kgs-announces-investigation/story.aspx?guid=%7B30299316-ACCB-4B73-9E74-C8510BE5F86D%7D
There are more examples but i think I made my point. These 2 firms are full on scum bag lawyers. There suits result in little or no value to the shareholder after they are paid. Ya know its funny how quickly they filed filed suit.
As far as the OPBL liability to the BMO, it seems rather limited. Please note the following lines in the OPEX customer agreement.
PARTICIPANT ACKNOWLEDGES, UNDERSTANDS AND ACCEPTS THAT OPTIONABLE MAKES NO WARRANTY WHATSOEVER TO PARTICIPANT AS TO THE SYSTEM OR THE SYSTEM, EXPRESS OR IMPLIED, AND THAT THE SYSTEM IS PROVIDED ON AN "AS IS" BASIS AT PARTICIPANT'S SOLE RISK. OPTIONABLE EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NEITHER OPTIONABLE NOR ITS MANAGERS, OFFICERS, AFFILIATES, SUBSIDIARIES, SHAREHOLDERS, EMPLOYEES OR AGENTS MAKE ANY WARRANTY WITH RESPECT TO, AND NO SUCH PARTY SHALL HAVE ANY LIABILITY TO PARTICIPANT (i) FOR THE ACCURACY, TIMELINESS, COMPLETENESS, RELIABILITY, PERFORMANCE OR CONTINUED AVAILABILITY OF THE SYSTEM OR THE SYSTEM, (ii) FOR DELAYS, OMISSIONS OR INTERRUPTIONS THEREIN, (iii) FOR THE CREDITWORTHINESS OF ANY OTHER PARTICIPANT, OR (iv) FOR THE ACTS OR OMISSIONS OF ANY BROKER AUTHORIZED WITHIN THE SYSTEM BY PARTICIPANT TO UTILIZE THE SERVICES ON BEHALF OF PARTICIPANT. OPTIONABLE SHALL HAVE NO DUTY OR OBLIGATION TO VERIFY ANY INFORMATION DISPLAYED ON THE SYSTEM. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE SYSTEM DOES NOT AND SHALL NOT SERVE AS THE PRIMARY BASIS FOR ANY DECISIONS MADE BY PARTICIPANT AND THAT OPTIONABLE IS NOT AN ADVISOR OR FIDUCIARY OF PARTICIPANT.
I believe the real issue for OPBL is weather it can attract/retain client given the non-stop negative PR. OPBL's management of the BMO fiasco has put serious doubts in it leadership and product. I suspect will be launching their own counter offensive very soon. It is questionable if it can be effective.
no position.
:-X :-X :-X
Optionable CEO Quits
By Mark DeCambre
TheStreet.com Senior Writer
5/14/2007 9:55 AM
Optionable (OPBL - Cramer's Take - Stockpickr) CEO Kevin Cassidy has resigned.
Day to-day management of the Valhalla, N.Y.-based electronic broker company will be assumed by Chairman Albert Helmig, according to a statement issued by the company this morning.
Optionable has been under significant duress over the past few weeks. Its shares, which have traded as high as $8.63 earlier this year, plummeted to $1.01 at the close of trading on Friday, after a series of setbacks.
BMO Financial (BMO - Cramer's Take - Stockpickr - Rating) -- Optionable's largest client, accounting for about 30% of its revenue in the latest quarter -- announced last week it suspended its business relationship with the trader. That move came just a week after the Toronto-based bank announced that it had incurred big losses on natural gas option bets.
Matters have only gotten worse for Optionable. Late last Friday, firm Sarraf Gentile announced that it had launched a class-action securities fraud suit in the U.S. District Court for the Southern District of New York. The suit names as defendants Optionable and some of its top executives.
In a statement, Helmig said, "in my new and expanded role as executive chairman I am going to assess the situation and guide the company accordingly."
The legal woes come as the New York Mercantile Exchange (NMX - Cramer's Take - Stockpickr) revealed a plan to compete with Optionable.
Nymex has a 19% stake in Optionable, which many observers believed meant that the exchange intended on either buying Optionable at some point or incorporating it into its own array of services. But Nymex's move to launch its own electronic service means that scenario is not likely. The Nymex service is expected to launch sometime in late June.
A spokesman at Florham Park, N.J.-based public relations firm Keating & Co., which Optionable hired for its crisis management capabilities a week ago, declined to comment.
Press Release Source: Schatz Nobel Izard, P.C. >:D
Law Firms Actively Pursue Class Action Against Optionable, Inc. -- OPBL
Thursday May 17, 3:15 pm ET
HARTFORD, Conn., May 17, 2007 (PRIME NEWSWIRE) -- The Connecticut law firm of Schatz Nobel Izard, P.C., along with New York-based law firm Sarraf Gentile LLP, are actively pursuing a class action against Optionable, Inc. (``Optionable'' or the ``Company'') (OTC BB:OPBL.OB - News) on behalf of all persons who purchased or otherwise acquired the common stock of Optionable between May 6, 2005 and May 10, 2007, inclusive, (the ``Class Period''). The action is currently pending in the United States District Court for the Southern District of New York at docket number 07-CV-3845.
The Complaint alleges that Optionable and certain of its officers and directors violated Federal Securities laws by making misleading statements concerning the Company's business prospects and growth. Specifically, throughout the Class Period, Defendants failed to disclose the following facts: (i) Optionable was engaged in improper deals with its biggest client, the Bank of Montreal (``BMO''); (ii) Optionable's business was extremely dependent upon BMO; and (iii) Defendants were able to retain BMO only because they helped its star options trader mismark options, falsify the trading price at which BMO traded those options, and hide massive losses incurred by BMO as a result of those trades.
On April 27, 2007, BMO announced that it had lost between $300 to $400 million on trades executed through Optionable. In response to this disclosure, the Company's stock dropped 33%. Then, on May 8, 2007, BMO announced it was suspending all of its business relationships with Optionable. Finally, on May 10, 2007, it was disclosed that Deloitte & Touche LLP had conducted an audit of the trades that BMO had conducted with Optionable and found there had been ``serious mismarking of the book of natural-gas options.'' On this news, the price of Optionable fell further to $0.84, representing a total drop of nearly 90%. During the Class Period, Optionable stock traded as high as $9.10 per share. Subsequent to the Class Period, on May 12, 2007, CEO Kevin Cassidy resigned.
If you are a member of the class, you may, no later than July 10, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail:
[email protected] or you may contact Sarraf Gentile LLP at (212) 868-3610, or by e-mail:
[email protected]. To view a copy of the complaint filed by Schatz Nobel Izard, P.C. and Sarraf Gentile LLP or for more information about class action cases please visit: http://www.snilaw.com.
Contact:
Sarraf Gentile LLP
Joseph Gentile
(212) 868-3610
Fax: (212) 918-7967
[email protected] http://www.sarrafgentile.com
Schatz Nobel Izard, P.C.
Wayne T. Boulton
Nancy A. Kulesa
(800) 797-5499
[email protected] www.snilaw.com
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Source: Schatz Nobel Izard, P.C.