Facebook's (FB) IPO flop has been covered extensively in the press over the last ten days. The less than stellar debut negatively affected investor sentiment on the stock as well as left egg on the face of its lead underwriter Morgan Stanley (MS) as well as the Nasdaq Exchange (NDAQ). One high yielding stock that should benefit is NYSE Euronext (NYX). The company gets 17% of its revenues from new listings and is actively soliciting companies in the IPO pipeline to decide to IPO on its trading platform which provides human oversight and hasn't had the glitches of its rival.
7 reasons NYX is a bargain at under $25 a share:
- The stock yields close to 5% (4.9%) and has an A+ rated balance sheet.
- The stock is selling at the bottom of its five year valuation range based on P/E, P/B, P/S and P/CF.
- Insiders have been net buyers of the stock so far in 2012.
- The company more than doubled operating cash flow from FY2009 to FY2011.
- The stock is selling at under 9 times forward earnings, a substantial discount to its five year average (14.7).
- The stock is cheap at 93% of book value, under 7 times operating cash flow and has a five year projected PEG of around 1 (1.01).
- The stock is selling under analysts' price targets. The median analysts' price target by the 17 analysts that cover the stock is $30.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in NYX over the next 72 hours.