Back to top

Press Releases

The Zacks Analyst Blog Highlights: CME Group, Morgan Stanley, JP Morgan Chase, Goldman Sachs Group and Royal Dutch Shell plc

CME MS JPM GS RDS.A

 ZacksTrade Now

For Immediate Release

Chicago, IL – February 23, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CME Group Inc. (CME - Analyst Report), Morgan Stanley (MS - Analyst Report), JP Morgan Chase & Co. (JPM - Analyst Report), Goldman Sachs Group Inc. (GS - Analyst Report) and Royal Dutch Shell plc (RDS.A - Analyst Report).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

CME Hikes Stake in Dubai Mercantile

In an attempt to strengthen its oil futures market, yesterday, CME Group Inc. (CME - Analyst Report) announced the acquisition of another 25% stake in the Dubai Mercantile Exchange (DME), thereby owning 50% of this Dubai’s commodities exchange in total.

The DME was established as a joint venture (JV) between the Dubai and Omani governments and the New York Mercantile Exchange (NYMEX) in 2007. However, following the acquisition of NYMEX by CME, the latter got a one-fourth stake in the DME.

While CME doubled its stake in DME, the Oman Investment Fund had raised its ownership to 29%, leaving Dubai Holdings with a 9% stake. The remaining 12% of DME is owned in tidbits by firms such as Morgan Stanley (MS - Analyst Report), JP Morgan Chase & Co. (JPM - Analyst Report), Goldman Sachs Group Inc. (GS - Analyst Report), Royal Dutch Shell plc (RDS.A - Analyst Report), Concord Energy and Vitol. The shift of interest was part of the recapitalization process initiated by DME to restructure its debt.

Hiking its stake in DME appears to be a strategy growth step for CME, which has been firming its global footprint in the energy sphere for long now. Additionally, as CME has already been launching its crude oil futures and options contracts on the globally leading Brent and light sweet crude oil (WTI) benchmarks, initiating crude oil futures through DME would further enhance its reach in the rapidly developing markets of Middle East and Asia.

Moreover, DME being out of the Organization of the Petroleum Exporting Countries (OPEC) enjoys liberty of price discovery and is open to testing new risk management products. These factors pave scope for DME to stay ahead and quickly acclimatize to the consistent changes in global industry dynamics. DME also aims to grow as a benchmark for new crude oil futures contracts in Middle East and Asia, and price these contracts within the region as most of the crude oil is generated in the Middle East.

Hence, being a part of such an attractively positioned mercantile exchange could further prove to be a feather in CME’s cap in the long run. Meanwhile, the company is head on heels to expand its market share by leaps and bounds. CME is also eyeing London Metal Exchange (LME) to enhance its metals exchange, Comex, and strengthen its competitive position in Europe. The company had participated in the preliminary bid to acquire LME, which closed last week.

Overall, we believe that CME’s efforts to promote, expand and cross-sell its core exchange-traded business through strategic alliances, meaningful acquisitions, newer product initiatives along with its global presence will generate a decent growth in the long term.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com

http://www.zacks.com

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%