Rob Callander
Archipelago Holdings
AX-A
BUY
Jan 24, 2006
When the merger with the New York Stock Exchange is completed on Feb 3, which is like the IPO of a new company. Similarly to the Toronto stock exchange this should increase in value.
This is really a play on the public issue of the NYSE. They are trying to merge the American Stock Exchange and the New York Stock Exchange together. There is some opposition to it, but if it happens, this is a way to be a player in the IPO of the NYSE. You are paying a premium.
The only way you can buy futures shares of the NYSE when it becomes a corporation. Sometime, near the end of January, they'll start moving into the corporate structure and the IPO phase. You will get one share of the new stock for each one of these you hold and will only be allowed to trade on a restricted basis for the first 1/2 years.
The stock has had quite a run and they prefer buying a stock when it is out of favour and hope that it will run up. Looking to buy after a company has moved is questionable. Doesn't know this company.