TRAC won't tell you if your train is on time, but it might tell you that your ship has come in. The firm offers a real-time financial and market data and online trading system, proTrack, for the institutional trader, and myTrack, for the individual trader.
The company provides real-time quotes and market data, news, and historical information to professional investors through MarketTrack. TRAC also offers business headlines through NewsWatch, historical information through Dial/Data, and analysis tools from its AIQ Systems software unit.
In November, TRAC announced its fiscal results for the third quarter ended September 30, 2004. Revenue for the quarter decreased 7% to $9,222,000. Year-to-date revenues fell 3% to $29,817,000. While revenue from the company’s professional market data services has been declining, revenue from Track ECN and the company’s Newsware division have been increasing.
TRAC has no long-term debt and has over $5 million in cash.
To help increase Track ECN’s revenues further, the company announced additional program upgrades. In December, Track ECN made changes to the way its subscribers can trade on Nasdaq.
In a nutshell, Electronic Communication Networks (ECNs) are electronic marketplaces that bring buy and sell orders together and match them with each other. Today ECNs handle roughly 25% of the volume in Nasdaq stocks.
To make further inroads into the ECN market, Track ECN increased its access and liquidity to the entire trading community. This means Track ECN clients receive higher trading priority on bids and offers placed away from the market.
Has the upgrade been helpful? We’ll let you decide. According to Nasdaqtrader.com, Track ECN reentered its list of Top 10 liquidity providers. Nasdaq’s report for the week of December 6th showed Track ECN in the number 9 slot; the first time Track ECN has been in the top 10 since 2002. For the last week of January, 2005, Track ECN had moved up three additional notches to the number 6 slot.
Despite recent upgrades and increased visibility, TRAC is currently trading near its 52-week low. Why? On January 19, the company announced a 1-5 reverse stock split. This reverse split has already been factored in by investors, which has ‘arguably’ put the company’s shares in an excellent price range with good upside potential.
