Thursday, November 03, 2005

Date for Vote set: December 6, 2005

Finally! To be sure, 12/06/2005 will be a big day for AX/NYSE stakeholders. The headwind on AX shares can be attributed to the uncertainty of the vote -- both the uncertainty of the date for the vote and the uncertainty regarding the outcome of the vote.

Warren Buffet's hero, Benjamin Graham axiom, "In the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine," is right on the money with AX. From today until the vote commences on 12/06/2005, the market will cast its votes towards the outcome of the NYX deal. In fact, the Street's been casting its vote since 4/20/2005 when the deal was announced. The perception that Langone and Higgens have votes that are more meaningful than anyone else caused AX to face inertia for the months following the announcement (even though the shares rose, their potential value [read: incredibly high value!] hasn't been reflected yet). However, as the date for the vote has come closer, the voting machine has been tipping in favor of the NYX deal closing.

The next thing to consider in the Street's collective voting booth is what sort of empire the NYSE will run once it's a for-profit company that concerns itself with rewarding shareholders. This is where the voting machine begins to be overshadowed by the weighing machine.

In the end, NYX tips the scales. The paint is starting to dry!


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