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BGC Partners, Inc. Message Board

  • deanmortensen deanmortensen Apr 2, 2013 5:25 PM Flag

    CEO Howard Lutnick owns 8,973,721 shares of BGCP stock...

    ...as of February 12, 2012, according to Yahoo! Finance. I always like to buy the shares of companies with high ownership by corporate officers. Lutnick knows what e-Speed is worth. Trading volume of U.S. Treasury bonds is temporarily depressed because the Federal Reserve is currently buying about 90% of the issuance. But, eventually the Fed's QE will end, and Treasury bond trading volume will rebound.

    E-Speed is a "crown jewel" of BGC Partners. In the aftermath of the September 11, 2001 attack on the World Trade Center, e-Speed shut down temporarily because Cantor Fitzgerald occupied a couple of upper floors of the building. The U.S. mortgage industry wasn't able to price mortgages for a while after the attack, until some Cantor employees were able to get e-Speed up and running again. That's how important e-Speed is. It not only is the main venue for electronic trading of Treasury bonds, it is also used as a benchmark to price other financial products. E-Speed is pretty close to the nerve center of the U.S. financial system. It's critical infrastructure.

    Lutnick also knows what BGC Partners is worth, and he knows BGCP stock is trading way below where it should trade based on the business value of BGC Partners. The stunning price Nasdaq OMX Group is paying for e-Speed confirms that fact.

    Sentiment: Strong Buy

 
BGCP
9.300.00(0.00%)May 22 4:00 PMEDT