CME shares fall to a 2-year low

Discussion in 'Wall St. News' started by archon, Jul 2, 2008.

  1. archon


    CME shares fall to a 2-year low
    Sharp decline in trading volume cited; fading price jeopardizes Nymex deal

    By Joshua Boak | Chicago Tribune Reporter
    July 2, 2008

    A sharp decline in June trading volume pushed CME Group stock to its lowest point since the start of 2006, further slashing the value of it ever-shrinking bid to acquire the New York Mercantile Exchange.

    CME Group shares closed down 6.2 percent Tuesday, at $359.39, a little more than half of what the parent company of the Chicago Mercantile Exchange and Chicago Board of Trade was worth in December.

    When CME Group announced negotiations in January to buy the Nymex, it offered a combination of cash and stock valued at more than $11 billion, or $119 per share.

    The stock slid in the following months amid questions about federal opposition to futures exchanges owning clearinghouses, eroding the value of the deal to an unacceptable level for some Nymex shareholders and members whose votes could decide its fate. The plunge in CME Group shares Tuesday reduced the deal to about $7.85 billion, roughly $3 per share above Nymex's closing price of $80.46...

    full article here:,0,5956076.story
  2. Yesterday's high volume may put a floor under the stock for awhile. We'll see.
  3. "Yesterday's high volume may put a floor under the stock for awhile."

    Au contraire. A high volume sell off is very bearish indeed.
  4. Parlay voo frawn say.....did you cover at 335.50? :cool: