Certainly seems like a one sided deal to me in favor of BGCP. BGCP will continue to use the Espeed platform. BGCP just cannot do the electronic trades for a period of 3 yrs. But after 3 yrs, BGCP may not own espeed, but can still use it and do business as usual. So it seems to me that in 3 yrs time, BGCP will be right where they are now with $750 cash and additional shares of ndaq. Sure, BGCP may have to pay a fee to use the espeed platform, but this deal seems like a huge deal in favor of BGCP. My only concern is if this deal can be blocked by NDAQ shareholders. Otherwise, a very good deal by Howard Lutnick in my opinion. And even now, BGCP is still way undervalued. BGCP has always been misunderstood by the street and continues to be misunderstood at this time. Just my opinions.
Their math skills are weak. All they had to do was analyze the numbers. BGCP just sold this asset that represents 25% of their profit for 1.23 billion. The market cap at $5.50 is 900 million. Morningstar is telling you that BGCP is worth 900 million even though they just sold this asset that represents 25% of their profit for 1.23 billion. Is it possible that the remainder of the company that produces the remaining 75% of the profit is worth 1.23 billion or 1.50 billion or 1.80 billion or ??? Would you sell your shares on the advice of an advisor that just told you that 2-3 billion in assets are only worth 900 million? Based on the facts as they've been presented, you'd almost have to believe that Morningstar is pumping for shorts. Again, based on the numbers that are public domain, the Morningstar reporting appears to be incompetent.
No one gives any value to the real estate platform yet they have consistently been growing both in terms of physical size of offices and real estate agents while also showing a growing gross and net revenue number now starting to make a big bottom line difference for BGCP.
I believe there was a lot of push back form firms that wanted to be part of their network but were concerned about sustainability and if I am correct which I believe I am we will see even bigger and better firms move to our real estate group. Some of these firms I am sure will want upfront cash to come over because they are very profitable.
We will see the re platform make over $1.00 per share within two years all by itself if re continues its recovery.
I keep looking at CBRE and JLL as my targets.
I am young and can wait oh I get paid a divy as well.