Thanks for the analysis, poles. It all makes sense except that I don't think 80 is that far away. Between the risks in the big market and earnings coming up, we could be down there easily. Who knows, though. Maybe the bod will give us the money they were going to spend on gfi.
Btw, who gave you the thumbs down? Some real weirdos out there.
Citi Research upgraded CME Group Inc
to Buy following a 10 percent pullback from its 52-week high. Citi sees a favorable macroeconomic environment, expanding trading volumes, widening margins, and a strong, monopoly-like position as factors that will lead CME higher. Citi also upped its price target by $6 to $94.
With 85 percent of revenues from transaction fees, Citi also notes that increased volatility will increase revenue, pointing at CME’s industry-leading volumes in 2015. Additionally, as the timing of Federal Reserve action continues to be debated, this uncertainty will keep “volumes robust” in CME’s interest rate business, which accounts for 25-30 percent of total revenue.
Finally, CME is instituting price hikes that take effect on February 1, showing the ability to continue to grow margins. Between these and price increases last year, Citi notes that revenue per contract will increase 2-3 percent.
The $94 price target puts a 16x valuation on 2016 EPS and a 12-month return of 17 percent, counting a 4.8 percent dividend.
Shares of CEM recently traded at $86.88, up 2 percent.
Reading your optimism with a drink in my hand is all I needed. Thanks. You have a great weekend too.
Ponz's numbers are right on (for once). : ) Who knows if this volume will sustain us through a possible bear market or even a big correction?
I am a little down because I woke up early Tuesday morning with this strong urge to sell. Haven't felt that way in a long time. When it was up early, I doubted my gut and proceeded to do nothing but watch a five dollar break. At least the close softened the blow for the next three days.
I've never figured out if I am greedy or just dumb.
Concerning your volume comment, I have always thought flight-to-quality volume was just temporary and not important to stock price and it occurs when the big market gets beat up, putting pressure on cme stock like we are seeing lately. Obviously we did great business while watching this thing go from 700 to 150.
We really need longer term inflation numbers for this volume to continue.
"The dividend is payable January 13, 2015, to shareholders of record on December 29, 2014."
I had thought whoever owned it by the end of the day today gets it. This ex-div stuff is still confusing.
s/b out of whack not wack
Just kidding around. Merry Christmas poles and everyone else. Hope you all have a great holiday season!
We have a Fridays and two 'eves' where the volume might be low to mid single digits.