TMX Group (X.TO)

If we think equity markets will do okay, exchange companies will do just fine. He would prefer to look outside of Canada because Canada’s makeup on the index probably is likely to see us underperform going forward for the next little while in the absence of a very robust recovery which might get our cyclicals going. Doesn’t think you will get hurt in this one as he expects equity markets are going to continue to perform pretty well.

Still a play on the expansion of trade in Canada. This is the only play in the sector. Discounted to global peer group.

Is highly levered to the ups and downs of the markets. He is looking for a correction of 8-10% soon. You don`t need to sell it but there is a correction risk in the stock.

Extremely well run company. Biggest headwinds they may face are 1) declining new issuance in the mining and oil/gas sectors and 2) trading volumes softening up. Feels this has run its course for the short term for the next year or 2. If there was a pull back, he would be looking to buy this.

You have to ask yourself where the business is going over the next 5 years. The business is not growing. New listings are shrinking and volume is being usurped but some of the alternative exchanges.

He would be more included to be a seller, model $43.09. Convoluted deal. He doesn’t expect anything major to happen to the balance sheet after the acquisition. Surprised the deal went through.