NYSE Euronext (NYX) is Due for a Rise
The following commentary will be based on the valuation or undervaluation of NYSE Euronext (NYX). This stock has been beaten down over the past six months off its year high of $112. As the stock was falling, several analysts came out with various downgrades and diminished their price targets. I believe this stock hit its low in early September when it hit $70 a share. Since that time the stock has announced record volume at the exchange in September. Along with that, there have recently been numerous upgrades and price increases. The list of major holders of this stock is mind blowing. It’s funny because I remember Goldman Sachs constantly downplaying this stock saying it is way overvalued. If you look below, they are the 8th largest shareholder. Talk it down and buy it up.
TOP INSTITUTIONAL HOLDERS
Holder Shares % Out Value Reported
ATTICUS CAPITAL LP 14,989,209 5.68 $1,103,505,566 30-Jun-07
KINETICS ASSET MANAGEMENT INC. 12,874,740 4.88 $947,838,358 30-Jun-07
AXA 11,297,174 4.28 $831,697,949 30-Jun-07
HORIZON ASSET MANAGEMENT, INC./NY 10,002,378 3.79 $736,375,068 30-Jun-07
General Atlantic LLC 8,061,704 3.05 $593,502,648 30-Jun-07
JENNISON ASSOCIATES LLC 7,228,767 2.74 $532,181,826 30-Jun-07
Credit Suisse/ 6,965,154 2.64 $512,774,637 30-Jun-07
GOLDMAN SACHS GROUP INC 5,872,449 2.22 $432,329,695 30-Jun-07
Third Point LLC 4,849,700 1.84 $357,034,914 30-Jun-07
Barclays Global Investors UK Holdings Ltd 4,515,927 1.71 $332,462,545 30-Jun-07
The float available is scant, so any type of announcement such as a merger will send the stock to the moon. And, I do believe there will be more consolidation in the industry. NYSE has to continue to be able to compete with the electronic exchanges such as the Nasdaq who has recently acquired the Boston Stock Exchange. My gut tells me it will be a name like the ICE (Intercontinental Exchange). This acquisition will give the NYSE a solid chunk of a futures exchange which it is now lacking. As it turns out, ICE also reported record trading volume in September. NYX also has the best growth in the exchange industry. Their quarterly growth (yoy) is 105% compared to the industry average of 17.8%. The growth of this company is almost impossible to gauge because they are constantly actively pursuing new mergers all over the world. They already have strategic positions in Asia which we all know will continue to be some of the most traded markets in the world. This 105% growth is a low estimate at this point in time. It seems silly not to invest in this stock at these levels.
Disclosure: We own option calls on NYX.
TOP INSTITUTIONAL HOLDERS
Holder Shares % Out Value Reported
ATTICUS CAPITAL LP 14,989,209 5.68 $1,103,505,566 30-Jun-07
KINETICS ASSET MANAGEMENT INC. 12,874,740 4.88 $947,838,358 30-Jun-07
AXA 11,297,174 4.28 $831,697,949 30-Jun-07
HORIZON ASSET MANAGEMENT, INC./NY 10,002,378 3.79 $736,375,068 30-Jun-07
General Atlantic LLC 8,061,704 3.05 $593,502,648 30-Jun-07
JENNISON ASSOCIATES LLC 7,228,767 2.74 $532,181,826 30-Jun-07
Credit Suisse/ 6,965,154 2.64 $512,774,637 30-Jun-07
GOLDMAN SACHS GROUP INC 5,872,449 2.22 $432,329,695 30-Jun-07
Third Point LLC 4,849,700 1.84 $357,034,914 30-Jun-07
Barclays Global Investors UK Holdings Ltd 4,515,927 1.71 $332,462,545 30-Jun-07
The float available is scant, so any type of announcement such as a merger will send the stock to the moon. And, I do believe there will be more consolidation in the industry. NYSE has to continue to be able to compete with the electronic exchanges such as the Nasdaq who has recently acquired the Boston Stock Exchange. My gut tells me it will be a name like the ICE (Intercontinental Exchange). This acquisition will give the NYSE a solid chunk of a futures exchange which it is now lacking. As it turns out, ICE also reported record trading volume in September. NYX also has the best growth in the exchange industry. Their quarterly growth (yoy) is 105% compared to the industry average of 17.8%. The growth of this company is almost impossible to gauge because they are constantly actively pursuing new mergers all over the world. They already have strategic positions in Asia which we all know will continue to be some of the most traded markets in the world. This 105% growth is a low estimate at this point in time. It seems silly not to invest in this stock at these levels.
Disclosure: We own option calls on NYX.
Labels: NYSE Euronext, NYX
posted by Stock Administrator @ 11:28 AM
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