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Friday, October 07, 2005

Stock Pick Corner: Nasdaq Company (NDAQ)

On July 3rd I alerted readers that I bought some shares of The Nasdaq Company (NDAQ). It was near its 52 week high and rather unknown. I initiated a position on 6/30/05 and added to my position on 7/14/05. If you bought along and held with me you would be up 40%. The stock is getting more attention as Lehman recently initiated an "overweight" on Wednesday. The stock will see more upgrades since only two other analysts follow it. A lot of comparisons are being made between CME and NDAQ. CME is currently valued five times greater than NDAQ by market cap. Lots of upside here. If NDAQ falls below or near $25 I will add to my position

"We believe the biggest impact will actually be in the area of market data fees, and to this extent, becoming approved as an exchange should have a positive bottom line impact on Nasdaq," Lehman Brothers

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