Tuesday, April 04, 2006

NYSE Listing

This morning's opening bell was sounded by Ireland-based, CRH plc. This is truly a nice listing for the Big Board. Much was made of Schwab's departure from NYX, however, CRH is a company that boasts roughly $16.7 billion in revenue, top-line growth of ~$3bb/year for the last 3 years, book value of ~$8bb, and free cash flow of $1 billion (Click here for source).

Compare that to Schwab's numbers. $5.1bb, top-line growth of ~$600mm/year for the last 3 years, book value of ~$3.5bb, and free cash flow of $550mm (Click here for source).

This is another win for NYX and is clearly indicative of NYX's leadership position.


Anonymous flashboy said...

I think that listing new companies will be a no-brainer for the NYSE. There is a huge brand value here. The question is can they keep the trading volume growing and avoid losses to the ECNs. If they list CRH but it gets traded half the time on ECNs and the NASDQ then they have not made much of a gain. I feel that liquidity issues will keep people trading on the NYSE but so far I have not seen proof of this as it seems share of trading volume continues to shrink. Any comments on this?

7:02 PM  
Blogger amotleyfool said...

NYX generates revenue from collecting listing fees.

And, NYX market share is on a significant uptick. Over the long run, NYX should continue to take share from NDAQ and others.

As structured products are unveiled it seems unlikely that NDAQ will be able to compete. For example, investors that are interested in going long SUNW, and want to buy a protective put in the same transaction (read: one singular product), they'll do it on the exchange that offers it.

Innovative NYX is at work creating these sort of products. Just keep Ben Graham's wise words next to your ticker -- "in the short run the market's a voting machine, and in the long run, the market's a weighing machine."

In the long run, NYX tips the scales. It'll help once analysts can get their arms around NYX and the competitive landscape. In the meantime, lots of confused folks and nervous hands.

3:30 PM  

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