In my opinion, the most interesting revelation from today's report was the breakdown of revenue per employee:
"Net revenue per employee was approximately $86,400 for the third quarter compared with $77,800 for the same period last year. At December 31, 2010 the company had 2,857 employees compared with 3,227 employees at December 31, 2009."
This is very telling considering it was a huge priority as Corzine first came in. Looks like he is getting the compensation cost structure under control. More impressive are the caliber of top new hires while improving the cost structure.
The proof is in the pudding, and we are seeing some of that pudding. So I am still very much inclined to like this story.
Needless to say, today's report was not one that justifies a great move. It is one where I expect MF to trace below 8.0, find support around mid/high 7s and then push upward. The push upward is justified as we are out of the weak 4th quarter, and entered a much stronger trading environment.


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