NYSE Euronext Holders, Ready for the Next Raid

The ridiculous valuation of NYSE Euronext (NYX - commentary - Cramer's Take) continues. The stock can't move to save its life even as there are acquisitions left and right in the space. And it is time to wonder what the company is doing to make sure that it remains relevant in a world where derivatives, not common stocks, rule.

The issue here is how to value a company that is a market leader in a business that everyone has written off: equities. The absurdity of all of this, the idea that somehow this company should be valued at less than I believe Euronext might have been worth given the weak dollar and the robust trading of equities and derivatives in Europe and how coveted Euronext was before this acquisition makes me feel that the stock is simply being "forced down" by people who are long CME (CME - commentary - Cramer's Take) and short NYSE Euronext, thinking that CME is the future and NYSE Euronext is the past.

The issue is valuation, of course. NYSE Euronext is supposed to make $3.34 next year. I can only believe that the shorts -- and they are numerous -- believe that number is too high and that the multiple for this stock should be no higher than the S&P 500's for next year. That would put this stock at $61. It would make the entity be worth $21 billion.

When I see that valuation, I wonder why the CME just doesn't buy NYSE Euronext for the European exposure and close New York. Or sell the real estate for a couple hundred million, make the whole thing electronic and fire all the specialists. If the CME did that, I think that the combined company would be the dominant securities trader of every kind of instrument.

Of course, to me, this is all absurd. NYX should be higher.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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