NYSE Euronext (NYSE:NYX)

CAPS Rating: 5 out of 5

A holding company that, through its subsidiaries, operate and regulate two securities exchanges: the NYSE and NYSE Arca, Inc. The Company is a provider of securities listing, trading and related information products and services.

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Player Avatar TrackJaffeStupid (74.93) Submitted: 5/20/2010 11:39:59 PM : Underperform Start Price: $24.84 NYX Score: +26.23

BOSTON (MarketWatch) -- Given the stock market's weakness lately, many investors are wondering if they should be in the market at all. But if being "in the market" means buying shares of NYSE Euronext Inc. the world's premier venue for trading public companies, then indeed it's time to get out.

NYSE Euronext (NYX) is the Stupid Investment of the Week.

Stupid Investment of the Week showcases concerns and conditions that make a security less than ideal for the average investor, and is written in the hope that spotlighting trouble in one security will make problems easier to avoid elsewhere. While obviously not a purchase recommendation, the column is not intended as an automatic sell signal.

For NYSE Euronext, some of the problems facing the broad stock market are coming home to roost for the big operator of the markets. There is promising long-term potential, but the current valuations are high enough to put NYX into the category of "good company, bad stock" -- the kind of security where an investor who buys in at the wrong time is likely to take a beating and exit before long-term prospects pay off.

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