Nasdaq Stock Market (NDAQ)

Does not own shares in company anymore.
Shares down after recent M&A.
Equity exchange business more competitive.
Information style business' are better.

(A Top Pick Sept 30/15. Up 34.71%.) This has done extremely well on the back of acquisitions. They are worldwide and on 6 continents. Made an acquisition in Canada recently. They own OMX, a Netherlands-based electronic platform, and then introduced a lot of technology to make it more efficient, bring down costs and increase margins. When he bought this, it was at about 15X earnings, and is now at about 18X. Not quite as compelling, but still a Buy.

He is positive on this. It is a story about volume and technology. They are increasing margins very effectively through using different tools.

(Top Pick Jan 15/15, Up 25.76%) It is going to do well on volatility and on volume. They have been good managers of their business. They have cut costs and increased margins. It would do badly in a secular bear market. We are either in a cyclical bear market or a correction, depending on who you talk to.

They have done well. We are back to normal times in the market. It brings bigger volumes and bigger price changes. Their margins are rising at a fairly high clip.

Volatility and volume is how NASDAQ makes its money. He expects that 2015 will be a return to a normal type of market, which will lead to more volatility and higher volumes, and this will be a beneficiary of that. They have expanded through their OMX purchase into Europe and Scandinavia in particular. Growing earnings quite quickly through internal efficiencies. Yield of 1.31%.