Tuesday, July 13, 2004

You win some, you lose some....Dominos lists on NYSE, Google to List With Nasdaq. Nasdaq pulls out of Canada

The New York Times > Technology > Google to List With Nasdaq: "In an amended regulatory filing with the Securities and Exchange Commission, Google said it would list with Nasdaq"

Today's scorecard:

NYSE 1 win 1 loss
Nasdaq 1 win 1 loss

Yes, the NYSE lost the big one. Sure, it may have been expected, the Nasdaq was the favorite from the start, but many at the NYSE hoped that the search engine firm would go for the traditional stability (and arguably lower trading costs) of the NYSE. However, in their amended SEC filing, Google announced its intent to trade on the NASDAQ.

Ever gracious in defeat, the NYSE wished Google well: "Google is an outstanding company with a great management team, and we wish the company well with its initial public offering." The failure to gain Google's shares however did nothing to help the tarnished reputation of the NYSE which is still smarting from the governance shakeup, specialists' front running, and Richard Grasso's pay package. Google joins most other internet and technology related stocks that trade on the Nasdaq.

For more on Google selecting the Nasdaq

However, the day was not a complete loss for the NYSE; Dominos Pizza's shares began trading on the NYSE. Of course, the pizza maker's shares are worth about $337 million based on first day's closing price while it is estimated that Google's shares will be worth nearly $3 Billion. Several things are interesting about the IPO. First it sold for $14 a share, which was lower than its estimated $15 to $17 price range. Why? It is hard to say but growth has been anemic and Forbes reports that the: "money raised in Domino's planned IPO will be used to repay debt and shovel $500,000 bonuses to two top execs. Insiders, including major shareholders and company officers, are cashing out."

For more on Domino's IPO

But lest you think that all is peaches and cream at the Nasdaq, the market continued to abandon its international expansion plans. After scaling back or halting operations in Europe and Japan, the market now has decided to pull out of Canada as well.

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