Discussion in 'Stocks' started by Hook N. Sinker, Oct 18, 2006.

  1. BOT price is in record high territory on high volume. Company is the Chicago Board Of Trade.

    I don't own the stock.
  2. Merger with CME

    The rich keep getting richer. There were some happy traders I'll bet. Nice bump. The question is do you hold BOT till the merger.

    "CBOT stockholders will have the right to receive 0.3006 shares of CME Class A common stock per share of CBOT Class A common stock (the exchange ratio) or to elect an amount in cash per share equal to the value of the exchange ratio based on a ten day average of closing prices of CME common stock at the time of the merger. The cash portion of the consideration is subject to a $3 billion aggregate limit and will be subject to proration if cash otherwise payable would exceed that limitation. If no stockholders elect to receive cash, stockholders of CME and CBOT would own approximately 69 percent and 31 percent of the combined company, respectively, and CME would issue approximately 15.9 million shares. Based on the closing stock prices of CME and CBOT on October 16, 2006, the last trading day prior to the announcement of the merger, the combined company is valued at $25 billion (CME equity $18 billion; CBOT equity $7 billion).The merger will not impact core trading rights or membership or clearing privileges at either exchange. The cash portion will be financed through cash on hand and debt financing, if necessary.The combination is expected to be (accretive) to earnings in 12 to 18 months post close. We expect pre-tax cost savings of more than $125 million beginning in the second full year following the closing. " from CBOT site.

    accretive: Growing in size by external addition. Often used to refer to an acquisition which is expected to increase earnings per share.

    My question is, is CBOT a buy at these levels? I would say yes.

    CME is trading well above its 50 period weekly exponential moving average. God knows between the two exchanges I've made quite a few donations. Maybe I can get some of my money back!!

    Here is a chart of CME. It is so pretty it brings a tear to my eye. Did anyone buy the dip at $170.00?
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