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NDAQ+ spring 2015 jiaxi
- 1. Click to edit Master title style 5/1/2015 15/1/2015 Analyst: Jiaxi Wu 2015 spring
- 2. Click to edit Master title style 5/1/2015 25/1/2015 Executive Summary Ticker: NDAQ Market Capitalization: $8.2 billion Sector: Financial Services Current Price: $48.26 Price Target (Base): $ 47.90 Up/Downside: - 1% My recommendation: Sell 50%
- 3. Click to edit Master title style 5/1/2015 35/1/2015 Company Overview
- 4. Click to edit Master title style 5/1/2015 45/1/2015 Company Overview • American multinational financial services corporation • Founded in 1971, Headquarter New York • NASDAQ merged with OMX group in 2008 Later named as The NASDAQ OMX Group, Inc. • Operate 70 market places in 50 countries • Owns NASDAQ stock and eight European stock exchanges
- 5. Click to edit Master title style 5/1/2015 55/1/2015 Management Team • Robert Greifeld “Bob” - Current CEO - 57 years old - Start from 05/2003 - Iona College, Bachelor’s Degree 1979, - Leonard School of Business, MBA, 1986 - Named the change from NASDAQ STOCK MARKET to Nasdaq OMX Group INC. - He focused the NASDAQ-OMX mission on being premier U.S equity market, leveraging NASDAQ- OMX’s fundamental market structure.
- 6. Click to edit Master title style 5/1/2015 65/1/2015 Major segments • Four main segments Market service: Equity derivative, cash equity trading, fixed income, currency and commodities trading and clearing Listing service: provide multiple global capital raising solutions for private and public companies. Companies must meet minimum standards. 2782 total Information service: Data products and Index Licensing and service business. Enhance transparency and provide critical information to profession and non professional investors. Technology Solution: Corporate solution and Market technology business. ” Investor relation, Public relations. Multimedia solution, governance
- 7. Click to edit Master title style 5/1/2015 75/1/2015 Revenue Distribution
- 8. Click to edit Master title style 5/1/2015 85/1/2015 Investment Thesis
- 9. Click to edit Master title style 5/1/2015 95/1/2015 What we have Student investment fund: - April 2014 - 1400 shares - $34.18 Current Price: -1400 shares - $48.26 We gain: $19,712
- 10. Click to edit Master title style 5/1/2015 105/1/2015 Reasons to Sell Stock Price is reaching a High Nasdaq Q1 Earning Analysis is negative Weak Rev growth and High Debt to Equity Recent news for NDAQ is negative Main segment decrease in U.S. Insider Activity: Sell
- 11. Click to edit Master title style 5/1/2015 115/1/2015 NDAQ Stock Trend (1year) Source: Bloomberg
- 12. Click to edit Master title style 5/1/2015 125/1/2015 NDAQ Stock Trend (1 month)
- 13. Click to edit Master title style 5/1/2015 135/1/2015 Reasons to Sell Stock Price in reaching a High Nasdaq Q1 Earning Analysis is negative Weak Rev growth and High Debt to Equity Recent news is negative and highly competitive industry trend Main segment decrease in U.S Insider Activity: Sell
- 14. Click to edit Master title style 5/1/2015 145/1/2015 2015 Q1 Earning Release highlight • April 23th, 2015 • Non-GAAP diluted EPS of $0.80. • The board has authorized two-thirds increase in dividend to $0.25 per quarter from $0.15 • Net Revenue $507 Million, down 4% year over year. (excluding the impact of foreign exchange rate and acquisitions) • Restructuring effort eliminated $17-19 million in annual expense • Repurchased $30 million of common stock, bring total repurchase to $208 million.
- 15. Click to edit Master title style 5/1/2015 155/1/2015 Reasons to sell Stock Price in reaching a High Nasdaq Q1 Earning Analysis is negative. Weak Rev growth and High Debt to Equity Recent news is negative and highly competitive industry trend Main segment decrease in U.S Insider Activity: Sell
- 16. Click to edit Master title style 5/1/2015 165/1/2015 Income Statement Highlight
- 17. Click to edit Master title style 5/1/2015 175/1/2015 Balance sheet Highlight
- 18. Click to edit Master title style 5/1/2015 185/1/2015 Key States Source: Morningstar
- 19. Click to edit Master title style 5/1/2015 195/1/2015 Reasons to sell Stock Price in reaching a High Nasdaq Q1 Earning Analysis is negative Weak Rev growth and High Debt to Equity Recent news is negative and highly competitive industry trend Main segment decrease in U.S. Insider Activity: Sell
- 20. Click to edit Master title style 5/1/2015 205/1/2015 Recent News & Risk • Nasdaq to settle Facebook IPO lawsuit for $26.5 Million (April 23) • Nasdaq CEO says exchanges need to be vigilant against bad actors • Decline in certain investor relations and multimedia product • Foreign exchange rate fluctuation.
- 21. Click to edit Master title style 5/1/2015 215/1/2015 Industry Trend NASDAQ compared with: Intercontinental Exchange (NYSE:ICE) Deutsche Boerse (NYSE:DBOEF) CME Group (NYSE:CME)
- 22. Click to edit Master title style 5/1/2015 225/1/2015 Reasons to sell Stock Price in reaching a High Nasdaq Q1 Earning Analysis is negative. Weak Rev growth and High Debt to Equity Recent news is negative and highly competitive industry trend Main segment decrease in U.S. Insider Activity: Sell
- 23. Click to edit Master title style 5/1/2015 235/1/2015 Main Segment
- 24. Click to edit Master title style 5/1/2015 245/1/2015 Reasons to sell Stock Price in reaching a High Main Segment is weak in U.S. Weak Rev growth and High Debt to Equity Recent news is negative and highly competitive industry trend Nasdaq Q1 Earning Analysis is negative Insider Activity: Sell
- 25. Click to edit Master title style 5/1/2015 255/1/2015 Insider Activity Source: Bloomberg
- 26. Click to edit Master title style 5/1/2015 265/1/2015 Future Strategy • NASDAQ will continue to attract many of the new economy including those as those in green energy like SolarEdge Technology. • Their most recent acquisition, Dorsey Wright to the information service segment have pretty visible development during the quarter • To set up a good relationship with client, they are testing their beta version platform and now is in the final stage • Strengthen their main segment (Market service) • One of their restructure plan is to move both Marketing and Accounting to operations.
- 27. Click to edit Master title style 5/1/2015 275/1/2015 Scenario Analysis Bull • Price Target • $51.41 • P/E:18.67 • +7% Base • Price Target • $47.90 • P/E:16.67 • -1% Bear • Price Target • $44.43 • P/E:14.67 • -8%
- 28. Click to edit Master title style 5/1/2015 285/1/2015 Conclusion Current Price: $48.26 Fair Value(base): $47.90 Downside: -1% Recommendation: Sell 50%
- 29. Click to edit Master title style 5/1/2015 295/1/2015 • 8:00 am exam • In the other classroom • Mdna, 10k,go find F/S,B/S, Notes, what’s in those things.
Editor's Notes
- Explain Pineapple Logo. The NASDAQ Composite is a stock market index of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market. Along with the Dow Jones Average and S&P 500 it is one of the three most-followed indices in US stock markets. The composition of the NASDAQ Composite is heavily weighted towards information technology companies.
- 2 hold 1 buy
- 2. NDAQ operate a variety of listing platforms around the world to provide multiple global capital raising solutions for private and public companies. Companies listed on our markets represent a diverse array of industries including, among others, health care, consumer products, telecommunication services, information technology, financial services, industrials and energy. Our main listing markets are The NASDAQ Stock Market and the Nasdaq Nordic and Nasdaq Baltic exchanges. Companies seeking to list securities on The NASDAQ Stock Market must meet minimum listing requirements, including specified financial and corporate governance criteria. Once listed, companies must meet continued listing standards. The NASDAQ Stock Market currently has three listing tiers: The NASDAQ Global Select Market, The NASDAQ Global Market and The NASDAQ Capital Market. All three market tiers maintain rigorous listing and corporate governance standards (both initial and ongoing). As of December 31, 2014, a total of 2,782 companies listed securities on The NASDAQ Stock Market, with 1,549 listings on The NASDAQ Global Select Market, 627 on The NASDAQ Global Market and 606 on The NASDAQ Capital Market. 3. Data Products Our data products enhance transparency and provide critical information to professional and non-professional investors. We collect, process and create information and earn revenues as a distributor of our own, as well as select, third-party content. We provide varying levels of quote and trade information to market participants and to data distributors, who in turn provide subscriptions for this information. Our systems enable distributors to gain direct access to our market depth, index values, mutual fund valuation, order imbalances, market sentiment and other analytical data. Revenues from data products are subscription-based and are generated primarily based on the number of data subscribers and distributors of our data. Index Licensing and Services Our Index Licensing and Services business is a leading index provider that develops and licenses Nasdaq branded indexes, associated derivatives and financial products. We also provide custom calculation services for third-party clients. License fees for our trademark licenses vary by product based on a percentage of underlying assets, dollar value of a product issuance, number of products or number of contracts traded. We also license cash-settled options, futures and options on futures on our indexes. 4. Our Technology Solutions segment includes our Corporate Solutions and Market Technology businesses. Corporate Solutions Our Corporate Solutions business serves corporate clients, including companies listed on our exchanges. We help organizations manage the two-way flow of information with their key constituents, including their board members and investors, and with clients and the public through our suite of advanced technology, analytics, and consultative services. We provide Corporate Solutions products and services in the following key areas:Investor Relations. We offer investor relations content, analytics, advisory services and communications tools. Our solutions make it easier for companies to interact and communicate with analysts and investors while meeting corporate governance and disclosure requirements. •Public Relations. We offer solutions to help clients identify, reach, monitor and measure their public relations program. We provide traditional and social media contacts data, backed by over 100 research analysts. Our press release distribution, webcasting and media players allow clients to reach global audiences cost-effectively. Our suite of technology solutions and expert analysts help clients monitor key news media for their brand, reputation, products, as well as industry competitors, and measure the success of their communications programs. •Multimedia Solutions. We offer a range of services to reach internal and external audiences, including webcasting, webinars, media player, and investor relations websites. Our global scale provides regional expertise and local language support as well as proprietary distribution channels and access to our network of publishing partners. •Governance. We offer a secure collaboration platform for boards of directors or any team collaborating on confidential initiatives. Our solutions protect sensitive data and facilitate productive collaboration, so board members and teams can work faster and more effectively. We also provide enterprise governance, risk and compliance software solutions that harness disparate business processes and content to promote efficiency, transparency and control. Market Technology Powering more than 70 marketplaces in 50 countries, our Market Technology business is a leading global technology solutions provider and partner to exchanges, clearing organizations, central securities depositories, regulators, banks, brokers and corporate businesses. Our Market Technology business is the sales channel for our complete global offering to other marketplaces.
- The recent huge decrease there on Jan 29th, because their 2014 4th quarter earning report shows their EPS beat by the street estimate, but their revenue is lower than the same quarter last year, because of their merge and acquisition related expense increase a lot, which is $35 million compare to $5 milion last year Oct 26, Q3 earning release 2014 & Brokers Group Sees Conflict in Vote for Nasdaq System, NEW YORK, Oct 14 (Reuters) - Longstanding concerns about the governance of key data processors used in U.S. stock and options trading erupted on Tuesday when a lobby for the brokerage industry urged a conflict of interest be resolved before a scheduled vote on Wednesday.
- April 23
- We repurchased $30 million of stock in the first quarter, bringing our repurchases since resuming our buyback program in second quarter of 2014, to $208 million. This increase in dividend reflects confidence in the stability of the profitability and cash flow of our diverse and growing businesses, our ambition to grow our dividend over time,
- EBITDA offset increased borrowings on the revolver to fund a portion of the Dorsey Wright acquisition.
- 1. April 23 (Reuters) - In a first for a U.S. stock exchange, Nasdaq OMX Group on Thursday agreed to pay $26.5 million to settle a class-action lawsuit involving its bungling of Facebook Inc's $16 billion initial public offering, the plaintiffs' lawyers said. The lawsuit said Nasdaq violated federal and state laws by not disclosing technology weaknesses in its IPO systems and failing to properly design and test them for the Facebook offering. 2. We have to have the assumption that bad actors will try to do bad things within the market," Greifeld said in an interview. Greifeld said that new types of surveillance methods, such as pattern recognition software, make it easer to spot the type of activities the UK trader was accused of executing.
- From their 1st quarter earning release call In market services on page 8, we saw a $6 million or 3% operational decrease in net revenues which was compounded by $14 million negative FX impact, resulting in a reported revenue decline of 10%. Equity derivatives trading and clearing net revenues fell $10 million due to lower US equity options industry volumes and average capture
- We started with customers who indicated they are primarily trading in the dark because of the high cost of access, or take fees.