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Monday, August 27, 2007

NYSE EURONEXT ( NYX ) MANIPULATION : If The Rumors Are True Is It A Blessing In Disguise ?

Nyse Euronext ( NYX ) has become one of the most fruitless stocks of the year. Ironically and sadly it was declared by the self proclaimed statesman, Jim Cramer, as his stock of the year. Now with the year more than half over, NYX has become increasingly notorious. Allegations and rumors of manipulation have reached an all time high. People are saying that there is both legal and illegal manipulation driving the stock down. People have noted irregular stock movement during periods of low volume as highly suspicious. Some have even thought up conspiracy theories involving Jim Cramer and other stock analysts. However, while many share holders have seen this alleged manipulation as a curse, others seem to think it is a blessing in disguise.

Manipulation is a serious allegation and while it has not been proven in NYSE EURONEXT’s case, people are still relentless in their suspicions. For instance, one of the more common accusations is irregular activity during low volume. “Man look at the manipulation. Up a quarter in the last few minutes on no volume. Can you believe it? LOL” this was posted on a message board on August 24, 2007. It is common to see people taking note of strange NYX behavior on message boards. Another reason why people have become more suspicious is because of recent changes in NYX’s regulatory entity when it merged with the NASDAQ’s. The NYSE non – profit entity which is responsible for oversight lost most of its purpose and its independence. Now it has been limited to merely supervise listed company compliance. Although the move is projected to save money it is seen by the public as lessening protective oversight. People that see this activity as being harmful have either already sold, or they are waiting to sell on any strength .At the same time, how can some people see this alleged manipulation as actually being a positive thing?

People are actually saying that this manipulation of NYX really is a blessing in disguise. Primarily, this activity is seen as proof that major players are positioning themselves for big moves. They don’t believe that Cramer and John Thain are pulling their strings to merely fleece a few investors. They believe NYX has been driven lower to coincide with the predictable subprime mortgage fiasco.( NYSE EURONEXT has in depth data on the worlds largest financials). Now that NYX has been driven nearly to the floor amid new (predictable to insiders) merger rumors, it is positioning itself for explosive momentum. “Why would they manipulate unless it was really worth it?” is another message board response which encompasses the emotion behind this stock. Those kind of investors have been slowly backing up the truck this whole time waiting for NYX to flourish to its potential.

So will the alleged manipulation rumors drive people from buying and holding NYX stock, or will they see the activity for what it might be? The manipulation may be a sign that insiders are getting ready to make moves. Only time will tell what is in store for NYX. Until something does happen these rumors are sure to subsist.

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