Stockchase Opinions

Brendan CaldwellMontréal ExchangeMXX.TOTOP PICKOct 24, 2007

A backdoor way to play the US options business. They have the market cap to do it. Montreal should give itself more options then just Toronto. Will make themselves a serious key player by making acquisitions in the US options market.
$30.87

Stock price when the opinion was issued

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PAST TOP PICK
(A Top Pick Oct 24/07. Down 18%.) Acquired by the TSX (X-T). See Top Picks>
HOLD
If you own, just set and wait for it to be swallowed by the Toronto Stock Exchange (X-T).
DON'T BUY
Is going to be taken out by the Toronto stock exchange. Is more expensive then the Toronto. Thought the valuation is too high. Suggests buying TSX instead.
PAST TOP PICK
(A Top Pick Oct 24/07. Up 18.6%.) Talks between Montreal and TSX had looked like they had stalled very badly last summer but looks like it is proceeding now. Going forward, the TSX (X-T) is the better bet.
HOLD
Being acquired by the TSX group (X-T). Good deal and it makes a lot of sense.
DON'T BUY
Have a friendly agreement with the TSX (X-T), which will expire in 2009. This will become a kind of derivative and stock market. Some big competitive issues.
TOP PICK
Derivatives. Great growth. Could merge with another exchange.
BUY ON WEAKNESS
Smart Money would say that there would be one public exchange in Canada. A 2 to 3 year hold will make you some money. You might want to wait for some weakness.
DON'T BUY
Expect there will be a lot of competition among exchanges, which will end up with one player. This one could be hurt over time.
COMMENT
He generally likes exchanges. Quasi-monopolies and have very little capital expenditures. Tend to throw off a lot of cash.
WATCH
Long-term outlook for this exchange is wonderful. Specialize in the derivatives market, which is a growing market. Investors have exaggerated current price. In the long term, it's a great one to one.