This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Bargain Bin Stocks You Need to Buy

CME Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Chicago-based derivatives exchange company CME Group (CME - Get Report) has had a strong year, rallying more than 12% since the first trading day of 2012. That's not a huge surprise -- investors flicked the "risk switch" into the "on" position at the start of the year, driving volume in derivatives trades and resulting in revenues for CME. Even though the risk switch got moved to "off" at the start of April, this stock in looking cheap.

CME Group operates four of the most well-known derivatives exchanges in the world: CME, CBOT, Nymex and Comex. While those initialisms may not mean much to investors who don't deal with derivatives, they combine to make their parent the biggest futures exchange in the world, a status that has historically delivered dump trucks of cash to CME. The firm also owns the majority stake in Dow Jones Indexes.

>>Financial Stocks Bought and Sold by Hedge Funds

The firm currently trades for around 86% of book value, a price that looks even cheaper when you consider the fact that intangible assets (which constitute a big chunk of CME's value) aren't included in the book value calculation. Because CME operates clearinghouses for its exchanges, it has a deep economic moat in spite of the attempts by rivals to step in on some of its business. A burgeoning OTC market could bring growth in 2012 as sophisticated investors search out exposure that they can't get through traditional channels.

Even investors who don't want to trade derivatives should give CME Group a second look in this year.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CME $89.91 0.00%
GLW $22.46 0.00%
RDC $20.32 0.00%
TAP $76.97 0.00%
TX $19.46 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs