ORLANDO, Fla., May 15, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has issued a 1Q 2008 research update for OptionsXpress, Inc. (Nasdaq:OXPS), an online interface for equity options and futures trading.
Surya Gautam, MBA, RedChip Research Analyst, reported:
"As manifested by the sequential decline of its key financials, OXPS' performance in the first quarter was below our expectations. While the troubled U.S. economy and financial markets are partly accountable for the decline in trading activities, we believe OXPS' decline is also due to an inability to accelerate new account growth despite the Company's renewed marketing efforts. We still believe that OXPS has the potential to capture a significant market share owing to its dominant position in one of the fastest growing segments of the brokerage industry, award-winning proprietary software, and scalable business model. However, by and large, OXPS has not been able to create an increased share of high-margin revenue in its total revenue composition.
"Owing to its superior financial results and promising outlook, we have, for the most part, given OXPS higher valuations than its peers in the last few quarters. This quarter, however, we are giving it a more conservative valuation due to its slightly inferior performance, the falling federal interest rate, lower volatility in the market, and the fact that the effectiveness of its marketing campaigns still needs to be gauged further," Gautam continued.
"We are assigning OXPS a 'Hold' rating," she concluded.
About RedChip Independent(TM)
RedChip Companies, Inc. is a well-established source of independent research and information on the small-cap market. Dedicated to "Discovering Tomorrow's Blue Chips Today"(tm), its analysts seek out up-and-coming and undiscovered small-cap companies before they show up on Wall Street's radar screen. To view the full version of this report, subscribe to RedChip's Research Community online by visiting http://www.redchip.com/research/Researchmain.asp or call 1-800-REDCHIP.
The RedChip Companies Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=2761
Disclosure:
Neither the analyst(s) nor RedChip Companies, Inc., has received any compensation from OptionsXpress Holdings, Inc., or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. As such, neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities ("related investments"). This publication was furnished on the condition that it will not form a primary basis for any investment decision. Any opinions expressed herein are subject to change. The subject security is not a client of RedChip Companies, Inc., or any of its affiliates.