This stock has moved pretty well past several months. Its ownership of Instinet is particularly appealing. After hours trading is growing and Instinet is the center of it. Any ideas about Reuters and Instinet; i.e., possibly an Instinet.com i.p.o.??
I've done some investigation on the web but am also interested in any info or viewpoints out there on this.
Just attempting to "beat the Bulls to the gate", so to speak...
Open to any opinions...an up-to-date discussion on Reuters would be helpful.
Re: "is there hidden value in Reuters due to Instinet???"
I would think so. Instinet just made some European deals with a company called "Tradepoint" which I think will allow American dealer-broker's and institutional investors to trade in European stocks? Here is a story:
I recently bought some after the 20% haircut it received after the 'analyst' meeting in New York about a month ago only to watch another 20% shaved off after reporting disappointing earnings. Given that the prospects don't look good for Q4, does anyone have opinions on this. I know that Lehman is still predicting 27p EPS, and on a London price of around 540p, we are trading at 20 times...is this too pricey given their subdued prospects over the next little while?
Reuters is a great company, positioned perfectly for huge growth. They are the world's most important and trusted information company in an age where the world is converting to an information economy. They are a truly global company.
Their management is flawed, however, and until Mr. Job retires next year, I fear that the company will flounder. It would be difficult indeed for Mr. Job to start any dramatic changes when he won't be there to see them through -- so they are sort of in limbo until his 65th birthday.
I think I'll wait and buy stock once I understand the succession, and the successor's plans.
Did you read the news that Reuters may IPO Instinet today? Not confirmed but may recharge the stock. What percentage of TIBX do they own? Should know this, but so little time to research. I use island via datek, and just wonder who is winning that war of the ECNs?
I am encouraged by this news. I have long felt that Reuters is dramatically undervalued by the analysts because it has so many parts, with so many models, that they just get frustrated and slap a discounted cash flow value on it.
Letting Instinet go out will unlock significant shareholder value for RTRSY holders. Further, it will give Instinet direct access to capital markets to raise funds, give them the right currency to acquire where that makes sense, and of course give them the incentive package required to attract and retain the best management team.
I really hope that London's letting Tibco out, and now perhaps Instinet is the start of something big! If so, it will be wonderful for many businesses, lots of my friends (who work at Reuters or Reuters subs), and most importantly for the shareholders.
Rick, I agree. Let Instinet stand on its own and prove itself. It has been amazing to see the Nasdaq just power by the NYSE. Sometimes when they show the NYSE on CNBC, and the MMs are just kinda standing around, you get this feeling that the NYSE market structure has to really change, and with that change, improve the prices that small investors like me can get for NYSE stocks, as I now receive thru my Datek/Island account. Do you know what % of TIBX stock they hold, if you know it offhand.