Re: i just bought nyx @ 71.10
nyx is a good stock. NYSE (the exchange) went through some tough times, but the stock itself is much more than that. it likely has 30-40 points of upside in it, and little downside (can't say no downside because the story hasn't changed since it traded at $85).
they own a bunch of stock exchanges and its P/Book is about 2, which gives you a theoretical downside of $35, but that's if all 12 cash and derivative exchanges fail to make any money until the end of the year (while hitting record volumes month-to-month). a much more likely scenario is that $70 is the floor for all business other than NYSE. essentially, you are getting any NYSE earnings for free at the end of the year.
i've been averaging down on it during this slide. it is trading at 25 F P/E, which is high compared to investment services, except the company is not really comparable to Goldman Sachs and T.Rowe Price. 25 F P/E is pretty low, especially for something with greatly improving margins. they figure that running two exchanges together is cheaper than two separately. that's why their operating margin went from 9% in 2006 to 16+% TTM. that's pretty good. if they can hit a 25% mark for 2007, this will be $120 stock.
this is only my opinion. you should research the stock yourself before you invest.
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08-07-2007, 04:28 AM
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