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ICE, ICE, Baby!
For the contest this week, unless I change my mind, I will take my chances with IntercontinentalExchange (ICE) long. No, this has nothing to do with our resident Ice Man.
Here's why I like ICE: Good, strong revenue and earnings growth (always my first concern), HUGE 32.9% R.O.A. and 43.2% R.O.E. (these numbers vary according to different info sites), zero debt, and steadily increasing earnings projections. Also, as you can see from this one-year chart, it's blue skying right now.
This company IPO'd on Nov. 16, 2005, so one year, plus one trading day, amounts to its entire history so far.
In view of that nearly 7% pop last Friday, I would be less inclined to choose this one if it weren't for that HUGE spike in volume that accomapnied it. That's why I like to look at volume, Mr. Runner. Big price spikes on flimsy, anemic volume are almost sure to give it all right back. The chances that the gains will hold, while not certain, are easily superior when you see huge volume like that. That's one thing I believe Mr. O'Neil has right.
The P/E is pretty high in the mid to upper 80s, but it's more than 2½ x the forward P/E.
For the contest this week, unless I change my mind, I will take my chances with IntercontinentalExchange (ICE) long. No, this has nothing to do with our resident Ice Man.
Here's why I like ICE: Good, strong revenue and earnings growth (always my first concern), HUGE 32.9% R.O.A. and 43.2% R.O.E. (these numbers vary according to different info sites), zero debt, and steadily increasing earnings projections. Also, as you can see from this one-year chart, it's blue skying right now.
This company IPO'd on Nov. 16, 2005, so one year, plus one trading day, amounts to its entire history so far.
In view of that nearly 7% pop last Friday, I would be less inclined to choose this one if it weren't for that HUGE spike in volume that accomapnied it. That's why I like to look at volume, Mr. Runner. Big price spikes on flimsy, anemic volume are almost sure to give it all right back. The chances that the gains will hold, while not certain, are easily superior when you see huge volume like that. That's one thing I believe Mr. O'Neil has right.
The P/E is pretty high in the mid to upper 80s, but it's more than 2½ x the forward P/E.
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