Episode notes
Kyle Grieve and Shawn O’Malley analyze OTC Markets Group, a hidden infrastructure company that collects tolls on over 12,000 securities while operating with fewer than 130 employees. They explore why OTCM is the only viable option for small companies and international firms seeking access to the US market. Find out whether the current stock price offers an attractive entry point for value investors.
IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:01:24 - Why OTC Markets operates as a hidden monopoly, most investors have never heard of
00:03:08 - The three business segments generating recurring revenue from market infrastructure
00:09:09 - How OTCM's pricing power compares to other monopolistic businesses
00:14:54 - Why 130 employees can manage the infrastructure for over 12,000 securities
00:19:41 - What keeps customers so loyal
00:27:02 - How regulatory relationships create barriers to entry
00:50:22 - The surprising reason declining subscriber counts might not be concerning
00:59:00 - The exceptional unit economics that make Corporate Services so profitable
01:02:29 - Why management's capital allocation approach is so different from that of typical CEOs
01:19:54 - Whether this hidden infrastructure gem deserves a spot in your portfolio
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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