Don’t Gamble, Own the Casino Instead: CME Group Inc (CME)

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Other than recent slowed revenue growth, I like the fundamental numbers and technical picture. Shareshave soared about 26% this year, recently climbing past $63. However, the stock has since fallen back, setting up an ideal buying opportunity.

Don't Gamble, Own the Casino Instead: CME Group Inc (CME)

Risks to Consider: Greater competition and the fallout from the MF Global scandal have hurt the CME Group. But I think revenue will soon return to normal growth. There is a tremendous amount of money on the sidelines waiting to get back into the market, and when it does, the CME Group will benefit. However, no one knows the future.

Action to Take –> The CME Group is an ideal opportunity “to own the casino.” This casino actually serves a real economic purpose for farmers and other producers who use it to manage market risks. I like the stock as a “buy” right now with a stop-loss at $59 and an 18-month target price of $70.

This article was originally written by Dave Goodboy, and posted on StreetAuthority.

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