cowley_ed, during the Q&A on the April 1st cc, one analyst remarked that none of them had ever bothered to do a "sum of parts" valuation analysis of BGCP, because they never dreamed Lutnick might consider selling parts of the firm. Now the analysts are scrambling to revise their valuations to reflect the value inherent in BGC's trading and broker businesses. They all had clearly misunderstood and underestimated the value of BGC's assets. Clearly, the analysts were flabergasted at the sales price Lutnick got from Nasdaq OMX Group for the on-the-run, electronic Treasury bond trading platform piece of e-Speed. Lutnick had to explain it over and over again, and still the analysts couldn't believe their ears, and asked him to explain it one more time. I found it hysterical that the analysts who cover BGCP clearly hadn't a clue as to what its assets are worth in a sale. They were shocked that BGC will actually receive $1.234 billion in total from Nasdaq OMX Group for that one asset, including the $484 million in NDAQ stock. The analysts were dumbfounded, and simply couldn't accept that Nasdaq OMX Group had agreed to pay that fabulous price, so Lutnick had to explain it to them about six times, causing much laughter for BGCP investors who were listening in on the call.
No doubt BGCP investors are looking at BGC in a new light post-announcement. I know I am.
Today, Friday looks like Day #4 for the stock price to close above 5.50. A nice base forming, it seems. Also the bid/ask prices are coming closer together, only .05 to .10 difference, compared to just 2-4 weeks ago where the spread between bid/ask was often .50. Glad those days are done. -Scott