Brian Powers

Jim Cramer's Mad Money, 12/7/07: Don't Nix NYX

There is a simple reason for the problem with NYX stock: the company is hard to value.

First, there was Arca and then Euronext, two big acquisitions that needed to be integrated. It is hard to estimate forward earnings with these variables. Then, you have speculation that NYSE could buy NYMEX, or ICE. Again, it is hard to forecast that kind of uncertainty.

Now, investors have the loss this week of the NYSE CEO and CFO to Merrill Lynch.

When you look at all of these variables, you see a company that, for many, is hard to value (especially over the short term that seems so in vogue). Nevertheless, the company has grown revenues and earnings by about 50% over the trailing twelve month period.

The best opportunities often arise when companies are hard to value.