IntercontinentalExchange Threatens to Break Out

IntercontinentalExchange (NYSE:ICE) is threatening a breakout from a nice looking second stage base.

From Google Finance:

IntercontinentalExchange, Inc. operates as an electronic global futures and over-the-counter [OTC] marketplace for trading an array of energy products. The Company also operates as a soft commodities exchange. IntercontinentalExchange offer an integrated electronic platform for side-by-side trading of energy products in both futures and OTC markets. Through its electronic trading platform, the CompanyGÇÖs marketplace brings together buyers and sellers of derivative and physical commodities contracts. Intercontinental Exchange also offers open-outcry trading in Board of Trade of the City of New York, Inc.GÇÖs [NYBOT] regulated futures and options markets. The Company conducts its OTC business directly and its regulated energy futures business through its wholly owned subsidiary, ICE Futures. It operates in three segments: energy futures, OTC and market data. On January 12, 2007, IntercontinentalExchange acquired NYBOT.

ICE is a company with a tremendous acceleration in earnings growth over the last three years with year over year growth 67%, 140% and 150%. The ramp up in growth isn't expected to continue, but '07 and '08 earnings growth still call for a very impressive growth rate of 40 - 50%. Net margins are a whopping 45% and ROE, while below industry averages, is excellent at around 24%. With many new positions added over the past year, institutions like what they see in the company. It's clear why ICE has been one of the highest rated stocks in the database for a long time.

TECHNICAL: ICE broke out of its first base since going public back in October of 2006 and quickly doubled in price. Since February, it's been digesting those gains constructively with a tight, healthy looking base. Today, the stock briefly broke out of a nice handle formation near the end of the day before pulling back a bit. It still looks poised to bust through that level (153.36) and tackle all time highs of 167 very soon.

Disclosure: Author owns a small position in IntercontinentalExchange (ICE).

ICE 1-yr chart:


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