the news today (which wasn't really new news) was imho, a trading, short covering event. I don't expect any follow-thru ... but who knows...
Stephen,
If we knew, we'd be rich (and not posting here). On the YHOO thread, someone figured 2 points for the MER news, 2 points for short covering and 2 points for the Jeffries and Merrill reiterated buys.
Whatever, after today's action NITE sports a 1999 p.e. of 25 (based on MER's new 1.60 estimate). Given that the estimate is likely conservative by several cents, and given that the company can, according to KP, grow at 5 to 10 percent a quarter going forward, there is no fundamental reason why NITE can't maintain today's close and even add to it somewhat.
Long term, with the addition of ISE (options), more institutional market share and Euro/Asian orders, there seems to me to be plenty of room for revenue growth and share price appreciation.
As for the MER deal, I do like the way it potentially frees NITE from the OLB/Online retail valuation box to which it seemingly had been restricted (at least in the minds of the Street).
Gary Korn |
