This column was originally published on RealMoney on Oct. 31 at 9:38 a.m. EST. It's being republished as a bonus for TheStreet.com readers.
If you look at which big-cap
-traded stock should, theoretically, have the most gain over the next few years, I'd wager it just might be the
New York Stock Exchange
There's a very important change going on at the New York Stock Exchange, the changeover to a hybrid system where technological changes make for faster, better, deeper trading that uses the specialist system only to get still better execution than you can get from the machines. It's been going on for a few months but now it's kicking into high gear, and the results are pretty astonishing.
There's been a lot of money bet against the Exchange. I believe those bets stem from a sense that the NYSE is going to lose share because of its outmoded ways. This hybrid move already puts the lie to that view.
In the meantime, with the market getting better, listings are picking up, trading is picking up and the public is coming back. People want to play this change with
. I wonder if it wouldn't be better to play it with the NYX.
There's more good news ahead. This Euronext deal is going to go through and it will be accretive in 2007, in part because of tech savings and in part because of global domination of euro and dollar trading. If the NYSE and Euronext get together with the Tokyo Stock Exchange, you are talking about one mega exchange that could dominate the world's stock and currency businesses.
You have to understand that the history of organizations that demutualize, like the
, the CBOE or
for that matter, is outstanding. Typically these companies weren't run all that efficiently because they didn't have to.
Now they do, and the results are amazing.
NYX has been sitting here in the low $70s waiting for the Euronext deal to close. I think you have to make a move before that deal closes, because numbers will come up when it does. Some of the vast preponderance of negative analysts on NYX will raise numbers ... and change their minds about the ratings.
Are you clicking on the "Ratings" link in our tickers yet? What are you waiting for? This is a prime chance to get help with your homework. Get another view on a stock.
TheStreet.com Ratings has collected tons of information on and given a grade to virtually every ticker you'll see on our sites, and we've made it all available to you. So get clicking! (Look for the "Rating" hyperlink that follows a company's name in the text of our articles, columns and blog posts, or just go right to
TheStreet.com Ratings area of our site.)
At the time of publication, Cramer had no positions in any of the stocks mentioned.
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
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