Time To Take A Closer Look at the NYSE Group

| About: NYSE Euronext (NYX)

Any fan of Mad Money knows that Jim Cramer’s 2007 number one “growth stock of the year” is the NYSE Group (NYSE:NYX), typically referred to as the New York Stock Exchange. Turns out viewers of CNBC’s Fast Money television show found out that three of panelists from Fast Money really like the New York Stock Exchange too.

During Thursday night’s (3/15/07) airing of Fast Money, a segment was devoted to discussing the Exchange stocks due to the news of Intercontinental Exchange making an offer to purchase the Chicago Board of Trade. Turns out Jeff Macke, Tim Strazzini and Guy Adami all favored New York Stock Exchange as their current favorite Exchange stock. When Dylan Ratigan asked Eric Bolling what his favorite exchange stock was, Bolling simply replied with “All of them”.

So, with NYSE Group’s stock down approximately 26 dollars since January 8th, 2007 why does this stock get such high endorsements from Mad Money and Fast Money?

While I can’t speak for them, I can take a moment to take a look at some of the highlights for the NYSE Group:

  • NYSE, Euronext deal expected to close this April
  • Euronext reported 2006 net profit increase of 50.8% to $475.4 million, revenues increased 14.6%.
  • On 3/14/07 Euronext.liffe reported a new daily trading record.
  • NYSE and Euronext are transitioning to more efficient electronic trading models.
  • Looking to continuetheir global expansion, Asia is speculated to be the next move for the NYSE.
  • Alliance with Tokyo Stock Exchange.
  • 5% Stake in National Stock Exchange of India.
  • Share lockup has passed (3/7/07)
  • Since the share lockup just passed recently we could continue to see pressure on the stock. However, with Euronext merger nearing completion and endorsements from Jim Cramer, Jeff Macke, Tim Strazzini and Guy Adami, now could be the time to start taking a closer look at NYSE Group.

    Disclosure: Author holds a long position in NYX.

    NYX 1-yr chart


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