cmegroup.com
EXCERPT:
About CME Group
As the world’s leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

Refco and Chicago Mercantile
Below is a sample of an IPO that received our highest rating.

CBOT Holdings BOT IPO $50-$52 3.2 million shares Underwriter(s) Credit Suisse, JP Morgan, Citigroup Proposed trade date 10/19.

One of the world's largest derivative exchanges, offering futures and options on futures.

CBOT Holdings which is the operator of the number 2 futures exchange, and a key trading floor for agricultural commodities is set to open for trade on Wednesday. CBOT has been a long awaited IPO. This is especially since the spectacular performance of The Chicago Mercantile Exchange CME (actually went Public at $35.00 in 12/02)… current closing quote $317.20 which is a 52 week increase of 85.33 percent or 800 % since its debut. CBOT originally filed at a price range of $33-$36.

Despite the extremely large demand for this offering it is not a large deal. This IPO is estimated, if priced at the high end, to bring in approximately 156 million. On average this year IPO's included 11.5 million shares and brought in on average 174.5 million. Price to book ratio is a ratio that is often used in comparing the value of one similar company versus another. The lower the value the better. In the case of CBOT the price to book is 5.4. If we take that number and compare it to Chicago Mercantile Exchange CME it is 11.7, the Nasdaq Stock Market NDAQ 14.1 and 11.9 at online brokerage OptionsXpress OXPS.

The amount of shares being offered by CBOT is only 6.1 percent of the outstanding shares. Therefore, one can probably surmise that a secondary will not be too far in the future if CBOT trades as well as expected. CBOT handles about 15 percent of all global listed futures and options, clearly making it one of the world's leading exchanges for derivatives. Trading volume in 2004 hit 600 million contracts, a 32 percent increase from 2003 (454 million contracts). Net Income in 2004 was 42 million versus 30.7 million in 2003. The offering proceeds will be used for general corporate purposes, including upgrading technology and possible future acquisitions.

CBOT relies on the Chicago Mercantile Exchange CME to clear its trades. This past week has been eventful for CME. Refco RFX one of the Chicago Mercantile Exchange main customers announced that it will shut down Refco Capital Management, its nonregulated offshore securities, and foreign exchange broker, due to liquidity problems. The CEO who has been charged with Securities fraud allegedly moved 400 million dollars of bad debts owed to Refco to a separate company he owned. However, despite these potentially serious issues, Refco was deemed last Thursday by the Chicago Mercantile as a member in good standing and continues to meet its obligations to the exchange. It is strongly expected that current Refco customers will move their business to other firms on the exchange. As expected there are numerous class action suits against Refco. The Chicago Mercantile exchange stated in a written statement that Refco accounts are protected through financial safeguards and risk management policies already in place. My research since the incident coupled with the fundamentals of CBOT allows me to believe that an outstanding IPO is imminent. Rating = 5

Our advisory service, which includes our IPO ratings and in-depth analysis, is available on your choice of a monthly or annual payment basis. To receive our advisory service click on

IPO Pipeline
EXCERPT:
IPO Boutique
9/24/2010 Friday
IPO Pipeline
Notes:
The Pipeline is a running total of filed IPO's that have not Opened, been Withdrawn or Postponed.

There is a 90% confidence level that the IPO's within the Pipeline will open within a year.

The IPO's beyond the 12 month window have only a 10% chance of ever opening.
The list of IPO filings and or specific changes listed below...is updated daily.
No Blank Check IPO's or SPACs are included.
THERE ARE 173 ACTIVE IPOS IN THE PIPELINE AS OF THE END OF AUGUST 2010

IPO Pipeline detailed listing
Click on any column heading below to order the list from low to high or high to low.

COMPANY Symbol UNDERWRITER Filed COMMENT
Country Style Cooking Chain CCSC BofA Merrill Lynch
2010-09-23 They are a fast food restaurant chain in China with 101 locations.
Fortegra Financial Corporation FRF Piper Jaffray
2010-09-23 They provide distribution and administrative services to insurance companies, brokers and agents.
LINC Logistics Company LLGX Citi
2010-09-23 They offer supply chain logistics services using an asset light model with 31 facilities in North America.
Sunity Online Entertainment Limited
SUNG Rodman & Renshaw
2010-09-22 They are a rapidly growing online game developer and operator in China; they currently develop game systems and operate game websites and plan to begin developing games for mobile or wireless devices such as cellular telephones in the near future.
China Power Technology CNPT Deutsche Bank Securities
2010-09-22 They formed through a reverse acquisition to manufacture industrial boilers in China.
US Federal Properties Trust USFP Deutsche Bank Securities
2010-09-22 They are a newly organized, internally-managed real estate company formed to continue and grow the business of acquiring, developing, financing, owning and managing properties leased primarily to the United States of America.
Campus Crest Communities CCG Raymond James
2010-09-20 They are a vertically-integrated REIT focused on high-quality student housing properties.
Rhino Resource Partners L.P. RNO Raymond James
2010-09-20 They operate thirteen coal mines located in Kentucky, Ohio, Colorado, and West Virginia.
The KEYW Holding Corporation KEYW SunTrust Robinson Humphrey
2010-09-20 They provide cybersecurity solutions to defense, intelligence and national security agencies.
Global Education & Technology Group Limited GEDU Credit Suisse
2010-09-17 They are a China-based provider of education services including foreign language training and test prep.
Spirit Airlines SPIR Citi
2010-09-17 They are a low-fare airline offering travel opportunities to and from Florida, the Caribbean and Latin America.
SouFun Holdings Limited SFUN Deutsche Bank Securities
2010-09-17 Opened Sept 2010
Legacy Healthcare Properties Trust LRP Jefferies & Co.
2010-09-16 They are a newly formed REIT that will own six senior housing facilities.
Lizhan Environmental Corporation LEC Maxim Group LLC
2010-09-16 They manufacture, distribute and market synthetic leather and other fabrics from recycled leather waste, among other materials.
ChinaCache International Holdings CCIH BofA Merrill Lynch
2010-09-16 They are the leading provider of internet content and application delivery services in China.
China Ming Yang Wind Power Group Limited MY Morgan Stanley
2010-09-14 They are the largest non-state owned wind turbine manufacturer in China.
Elster Group SE ELT Deutsche Bank
2010-09-13 They are a leading global provider of gas, electricity and water meters.
Amyris Biotechnologies AMRS Morgan Stanley
2010-09-13 They genetically modify yeast strains to operate an industrial synthetic biology platform.
American Assets Trust AAT BofA Merrill Lynch
2010-09-13 They are a self-administered REIT with an initial portfolio of 21 retail and office properties.
Liberty Mutual Agency Corporation LMA Citi
2010-09-13 They are the tenth largest US writer of property and casualty insurance and a subsidiary of Liberty Mutual Group.
CoreSite Realty COR Citi
2010-09-13 Opened September 2010
Anacor Pharmaceuticals ANAC Citi
2010-09-10 They are developing novel small-molecule therapeutics derived from its boron chemistry platform.
Targa Resources Investments Inc. TRGP Barclays Capital
2010-09-09 They own general and limited partner interests in Targa Resources Partners LP, a publicly traded Delaware limited partnership that is a leading provider of midstream natural gas and natural gas liquid services in the United States.
Callahan Capital Properties CCP BofA Merrill Lynch
2010-09-07 Withdrawn September 2010
Mirion Technologies MION Credit Suisse
2010-09-07 They are a private equity-backed provider of radiation detection systems.
China Education EDUI Rodman & Renshaw
2010-09-07 Withdrawn September 2010
FXCM Inc. FXCM Credit Suisse
2010-09-03 They are a leading online provider of foreign exchange, or FX, trading and related services to over 165,000 retail and institutional customers globally.
CTPartners LLC CTP William Blair
2010-09-03 They assist global clients with the recruitment and hiring of senior level executives.
Zoegenix ZGNX Wells Fargo Securities
2010-09-03 They developed a needle-free administration of the migraine drug sumatriptan called Sumavel DosePro.
Bruker Energy & Supercon Technologies ESCT Jefferies & Co.
2010-09-03 They develop superconducting technology for applications in the energy and healthcare markets.
SciQuest SQI Stifel Nicolaus Weisel
2010-09-02 Opened September 2010
China Oumei Real Estate OMEI Brean Murray
2010-08-27 They are one of the leading real estate development companies located in Qingdao, Shandong province, China. .............................................................................................................................................................................................................