NMX: A Longer-Term Play

The Hot IPO Trader
Tuesday, November 21, 2006
By Louis Basenese

Email – #85

** NMX: A Longer-Term Play

Although shares of NYMEX Holdings (NYSE: NMX) have pulled back from the stellar first day levels, there’s no reason to bail early.

As I mentioned before, this is much more than just a hyped-up IPO.

Recall the company is well positioned to advance higher on its own fundamentals – which include a 55% revenue growth and a 60% operating margin in the first half of 2006. Continual innovation and a consolidation-happy industry also make the firm a prime acquisition target.

In short, this is a longer-term IPO worth giving time to play out. Set your sell stop at $105.

I’ll keep you posted as the analysts weigh in, and the company reports earnings.

Elsewhere, in the past week we’ve had multiple opportunities to lock in our second profit in Home Inns & Hotel Management (Nasdaq: HMIN).

If you haven’t done so already, be sure to take profits by selling half your remaining shares for a 40% gain. And raise your stop to $28.

During this shortened trading week, there are no deals worthy of our consideration.

Here’s wishing you and your family a safe, happy and prosperous Thanksgiving!

Good investing,

Louis Basenese

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Stock

Current Price

Comments

NYMEX Holdings (NYSE: NMX)

$125.50

Set sell stop at $105.

Home Inns and Hotel Management (Nasdaq: HMIN)

$33.40

Take profits on half of remaining shares. Raise sell stop to $28.

eHealth (Nasdaq:EHTH)

$24.32

Sell stop is $22.50.

Riverbed Technology (Nasdaq: RVBD)

$30.22

Sell stop is $23.

MasterCard (NYSE: MA)

$97.33

Sell stop is $83.

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