Comments on: Precarious Economy; Stock of Day – Intercontinental Exchange (ICE)

By: Tate

Tate — Sat, 09 Jun 2007 02:44:40 +0000

It’s difficult to say if and when the rumors will materialize. Quite honestly I haven’t been following the nitty gritty details. From a pure technical standpoint ICE and BOT are leading the way right now and have the best looking charts but have to say I really like that NMX long term.

By: Kaushik Patel

Kaushik Patel — Fri, 08 Jun 2007 03:59:38 +0000

Tate,

I do agree with Zachary’s comments. I have been following this idustry for last 1 1/2 + years and have made decent money in CME and NYX. Missed out on BOT and ICE. Did well in ISE as well.

With ongoing consolidation in this industry, ICE and NMX are ripe for picking. NYX acquiring CME, seems bit far fetched at this time but am not as knowledgeable about the inner workings of this industry.

Main question is, timing related to these buyouts. ISE was purchased 4 days after their earnings, exactly 1-week after options expiration.

Please comment, am looking for way to make decent money in their call-options.

Thanks in advance,

K. Patel

By: Zachary Scheidt

Zachary Scheidt — Fri, 08 Jun 2007 01:37:04 +0000

I imagine the meeting this week with BOT seatholders was the final push. Check out the WSJ article today (6/7) on page C2 entitled “NYSE Euronext Eyes Expansion” NYX CEO states that he would like to acquire a US futures exchange to fill product offering holes. This is likely to be either NMX or ICE although there is a possibility it could be BOT or even CME. It will be fun to see where the chips fall.

By: Tate Dwinnell

Tate Dwinnell — Fri, 08 Jun 2007 00:23:45 +0000

One heck of a cost basis Zach..nice! It’s certainly an interesting industry right now with all the buyouts going on and talk of a 24 hour trading platform

You think ICE going after BOT is off the shelf? It would certainly be good for the stock if it wasn’t weighed down by those rumors. Haven’t heard of any rumors of NYX buying them.

By: Zachary Scheidt

Zachary Scheidt — Thu, 07 Jun 2007 22:06:31 +0000

I own ICE as well… I have a cost basis below 40 on my first purchase. While pullbacks can be severe at times, fundamentally ICE should do well in an environment with increasing volatility. Traders on ICE platforms (who also clear through ICE’s clearinghouse) will be more active as energy prices fluctuate and interest rate futures come more into the limelight. I expect when June volume totals are annouced, these first few days will have impacted revenue in a very positive way.

And keep your eyes peeled for a possible buyout. NYX is stating that they may need to acquire a company to stay competitive in the futures trading arena.

Thanks for your insight!