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Are the Best Days Now Behind the NYX?The NYSE Group's IPO comes after:
Did I mention that NYSE Group trades at 60 times projected full-year earnings? Meanwhile, CME shares trade at a robust 39 times full-year earnings projections (since commodity prices appear to have topped). Moreover, it remains likely that the NYSE Group plans to finance the expansion of its empire with stock. So it may use its richly priced currency on bids for the London Stock Exchange or the German Bourse. Finally, a series of secondary offerings should begin within 60 days for the NYSE Group as many of the former seat holders attempt to monetize their equity in the company.
A tripling in seat prices An increase in value of 75% for Archipelago, the predecessor firm to the NYX A 75% rise in brokerage stocks, one of the strongest market sectors And most importantly, after a raging bull market in equities that now appears to be a little long in the tooth, unlike the prospects for commodities in 2002-05.