Cramer Stomachs Sticking With NYSE (NYX)

Cramer has said he’s been a big backer of NYSE Euronext (NYX-NYSE) and was up on it early, but it has been a disaster since he named it his #1 Growth stock of the year.  Cramer said he has it in his charitable trust, but now 6 months into the year he said he doesn’t think it is a bad call upon review.  The Euronext merger is helping it and the demutualization history has been rewarding for investors.  He thinks that the stock is becoming a horrible trading stock that drops more than the markets on bad days and doesn’t rally as much as the market. 

Cramer interviewed Duncan Niederauer of the NYSE:  NYSE did big analyst day yesterday and they are the only multi-product global exchange that is scalable.  The street has a hard time valuing it and interpreting it.  On derivatives, the US futures market is a hole in their product mix and they admitted that the only way in is via an acquisition.  The listed trading volume in the U.S. is 85% exchange oriented and as the hybrid trading system has sharpened already.   Cramer asked about the specialist gap and the bizarre trading patterns of the stock, and the company said that it has released soem of the lock-up dates to just get the stock into the market because of the thin float.

What is obvious is that the ‘lock-up unlocking’ is hurting the stock.  That didn’t receive too much press and that would explain some of the mess.  NYSE has a history of allowing for a sloppy ‘lock-up release’ timing.  NYSE shares closed down at $79.95, down more than $32.00 from the $112.00 highs over the last 52-weeks.