CME down $103

It may seem like the end of the world for this stock, but percentage wise, about 17%, since it closed at $588 yesterday. As I mentioned previously, you can look at it as a $58.8 going to $48.5 or a $5.88 stock going to $4.85. When you see those numbers some of you will probably notice that you've seen many $5.88 stocks go to $4.85 fairly regularly. Whereas the $103 dollar drop in CME will probably get the headlines. This is the dangerous volatility I generally like to avoid in low priced stocks.

My personal opinion of CME's fiasco? I think even if they were asked to keep their clearing business separate, it would definitely lead to a decrease in overall margins over the long haul, but there are most likely a number of options available. And that's only if the DOJ letter even leads to a formal action, which could take years. Even in a worst case scenario, CME will probably need to sell their clearing business which could unlock a great deal of value.

As a side idea, I would look at a little known company named PNSN (Penson Worldwide), a pureplay clearing firm. They just beat earnings nicely and was up about 20% today. The CME news might just spike some interest in this long beaten down company.