Comments on: TSX Group, A Bad Apple In My Portfolio.

By: moneygardener

moneygardener — Thu, 14 Jun 2007 23:36:44 +0000

Good analysis. I don’t know enought about the industry or the stock to make a call about the future, but I like the way you are going about this.

Ovbiously if you decide to sell, the time to do so is not until the investors that jumped off the ship with the ‘alpha’ announcement, swim back aboard when solid earnings come in.

By: Investoid

Investoid — Fri, 15 Jun 2007 00:15:15 +0000

Like so many Canadian firms in finance and telecom, they’ve thrived from the lack of global competition in their playground. While that probably won’t change in the medium term, for the first time in awhile domestic competition is starting to heat up. It will be interesting to see if they adapt, or if they’ve gotten complacent on their perch.

If they do end up faltering (and even if they don’t), I can see them being a prime takeover candidate for one of the bigger exchanges (NYSE, Nasdaq, LSE, etc.) who are consolidating exchanges on a global scale at a relatively quick pace. Compared to those companies, TSX looks like a wonderful investment, as the others all have higher multiples, lower yield, etc.

If a buyout offer does surface, it will be interesting to see if the government steps in. Depending on the buyout premium, if I was an investor I might want them to keep going it alone and enjoy the fruits of a monopoly/oligarchy, or sell out and take my money elsewhere.

By: Financial Jungle Guy

Financial Jungle Guy — Fri, 15 Jun 2007 04:57:16 +0000

Thank you for the comments. Investoid, I believe Larry MacDonald mentioned in his article that the OSC set a 10% ownership ceiling against TSX Group. Poor TSX. First, the carrot to convert to income trust vanished, and now they can’t be taken out.

The stock should be safe for now, so I’ll wait it out.

By: larry macdonald

larry macdonald — Sat, 16 Jun 2007 15:32:34 +0000

Financial Jungle Guy: The market has a way of making people look foolish now and then, so let’s hope my time doesn’t come on the TSX Group call! By the way, TSX does have a 10% ceiling on ownership but management apparently recently expressed a willingness to let that limit be exceeded.

By: Financial Jungle Guy

Financial Jungle Guy — Sun, 17 Jun 2007 07:14:41 +0000

My goodness! Larry, thanks for taking time off your busy schedule to post here. Since I have a position in TSX Group, we’re both cheering for the business clear the hurdles.