For These Two, Buybacks Are Good Business

05/10/2011 12:50 pm EST


David Fried

Editor, The Buyback Letter

NYSE Euronext pursuer Nasdaq OMX has been sweet on its own shares in a big way, writes David Fried of The Buyback Letter.

Nasdaq OMX Group (NDAQ) is the world's largest exchange company. It delivers trading, exchange technology, and public company services across six continents, with some 3,600 listed companies.

Although the stock has been weak recently in the wake of Nasdaq's hostile bid for rival NYSE Euronext (NYX), Nasdaq OMX has also shown a prodigious appetite for its own equity-the company has reduced its shares outstanding by a whopping 16.7% in the last 12 months.

NASDAQ OMX offers multiple capital-raising solutions to companies around the globe, including its US listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the US 144A sector.

The company offers trading across multiple asset classes, including equities, derivatives, debt, commodities, structured products, and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations, and central securities depositories in more than 50 countries.

The company was formerly known as The Nasdaq Stock Market, Inc. and changed its name to The NASDAQ OMX Group, Inc. in February 2008. The NASDAQ OMX Group, Inc. was founded in 1971 and is based in New York, New York.

Guards Reclaiming Their Identity
Intersections (INTX) is a leading provider of consumer and corporate identity-risk management services. Its solutions provide comprehensive identity protection-from consumer credit and public data monitoring to personal asset security, PC protection from viruses and spyware, and more.

Some 8 million consumers are actively protected by Intersections' consumer and breach remediation services offered through North America's leading financial institutions, directly to consumers under its Identity Guard brand, and through its exclusive partnership with ITAC, the Identity Theft Assistance Center. Since its inception in 1996, Intersections has protected 32 million consumers.

Fourth-quarter and full-year earnings showed record revenue of $364.1 million in 2010, up from $346.2 million for the prior year. Income from continuing operations for the year was $14.9 million, compared with $687,000 for 2009, primarily due to an increase in revenue and decrease in marketing expenses.

And subscription revenue (net of marketing and commissions associated with subscription revenue) increased 13.7% for the year to $189.1 million, from $166.3 million for the comparable period in 2009.

Intersections has reduced shares outstanding by 4.3% in the last 12 months.

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