Friday, March 10, 2006

NYX = Global Leader

NYX had an amazing first day of trading. The stock rocketed to 88 the next day, and since then there's been a spattering of profit-takers cashing in their gains. The sellers are most likely those AX shareholders that are satisfied with their impressive returns, and short-term traders that are booking nice gains since Tuesday's AX close at ~$64.

The interest in NYX has been tremendous judging from our volume. With volume comes plenty of folks that just are not familiar with the opportunities that NYX now has. Those folks give buying opportunities to those aware of the incredible potential that NYX has.

The seatholders (who are absolutely aware of the NYX potential) mostly took their $300k in stock which indicates that they, for the most part, understand the long-term growth potential for NYX.


That said, today there was some news on the wire around 12:15 PM EST. The headline was that the LSE rejected a takeover bid by NDAQ. A subsequent article in the WSJ rambled about NDAQ's bid and the liklihood that NDAQ would come back w/another offer.

The reality is that NDAQ has failed in Europe. They've been down the road of trying to purchase LSE before. Click here to read about their failed effort in 2000. Click here to read about their collossal waste of money with Nasdaq Europe.

The market jumped on the idea of a tie-up between NDAQ and LSE. NDAQ's stock price soared over 10%. Volume for NDAQ also soared. These are clear indications that, for the most part, the market is scratching their collective head to figure out who the real leader in the exchange world is.

It's clear to ArcaNews that the leader is NYX. The confetti is settling on Wall & Broad, and it won't be long until the NYX begins executing its plans. Plans which include broadening its revenue base, acquiring other exchanges internationally, and cutting costs thereby expanding margins.

Ben Graham's insight comes to mind. "In the near term the market is a voting machine, and in the long run it's a weighing machine."

As ArcaNews has said all along: In the long run, NYX tips the scales.


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