Stockchase Opinions

Jeff Parent B. Eng. FCSI CIMIntercontinentalexchange Inc.ICEHOLDAug 08, 2018

The financial exchange sector has done well. It has nearly doubled in price over the past two years. It is again consolidating, but has made new recent highs. For the trend to continue you need to see it trade above $77 by October. As a holder, $71 is a stop.

$73.22

Stock price when the opinion was issued

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TOP PICK

They run stock markets. It is an asset light business with a global scope of operations. There are many supportive dynamics which can cause stock markets to grow.       Buy 16  Hold 2  Sell 0

(Analysts’ price target is $89.47)
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TOP PICK

Interactive data corporation is a trusted leader in financial information. thousands of financial institutions and active traders, as well as hundreds of software and service providers, subscribe to our fixed income evaluations, reference data, real-time market data, trading infrastructure services, fixed income analytics, desktop solutions and web-based solutions. interactive data’s offerings can help clients around the world with mission-critical functions, including portfolio valuation, regulatory compliance, risk management, electronic trading and wealth management. Social media mentions are up 100% in the past 24h.

BUY

50% of revenues are recurring, and they continue to diversify.

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TOP PICK
ICE Mortgage Technology, a division of Intercontinental Exchange, Inc., combines the innovation and expertise of Ellie Mae, Simplifile and MERS to automate the entire mortgage process from consumer engagement through loan registration and every step and task in between. Ellie Mae, as part of ICE Mortgage Technology, is the leading cloud-based loan origination platform provider for the mortgage industry with solutions that enable lenders to originate more loans, lower origination costs and reduce the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Social media mentions are up 50% in the past 24h.
PAST TOP PICK
(A Top Pick Dec 31/20, Up 2%) They own the NYSE. They own the mortgage processing company in the US. Mortgages have been in huge demand as interest rates have been low. He owns a lot of it.
TOP PICK
One of the world's largest futures, commodities, and derivatives exchanges. Interesting way to play cryptocurrency. Crypto is not going away, and this is the growth driver for its business. Yield is 1.06%. (Analysts’ price target is $121.00)
DON'T BUY
The fair market value is $90 so the shares are about as close as you are going to get to that. There is overhead resistance at $96 which is 2.5 times book value which it cannot break through.
HOLD

It is a nice financial stock that is not tied to interest rates. As markets go up, you get more trading activity. They have been doing well. She likes it and they have more growth than traditional banking financials. It is a hold because of instability of earnings.

COMMENT

Analysts are looking at 5% revenue growth and more in earnings but he questions that. The chart looks good with higher highs and lower lows. (Analysts’ Target: $65).

PAST TOP PICK

(Top Pick Nov 17’14, Up 12.15%) They generate a lot of free cash flow. They have de-levered. They benefit from rates.

PAST TOP PICK

(Top Pick Nov 17/14, Up 8.73%) A well run company that benefits from volatility. Revenues are more reliant on data services and not so much on trading volumes.

TOP PICK

This company runs the futures exchanges. They also own the New York Stock Exchange. They benefit from volumes and volatility, of which there has been none in the last little while. As the Fed exits QE 3 and as policy rates start to normalize, he thinks volume will come back into financial markets and this company will be the primary beneficiary. Thinks it can work through $300 in the next couple of years.