Fri, Jan. 16, 3:41 PM
- The $300M will allow FXCM to meet regulatory capital requirements and stay in business after clients blew a $225M hole in the company yesterday.
- In exchange for giving FXCM $300M, Leucadia (LUK +0.9%) gets a 2-year senior secured note for $250M and a claim to 75% of any proceeds should FXCM pay a dividend or be sold, reports CNBC.
- FXCM remains halted from trade after falling nearly 90% in the premarket.
- Dropping in sympathy in early action, GAIN Capital (GCAP +2.7%) is higher on the session, and Interactive Brokers (IBKR -0.5%) is down just modestly.
Fri, Jan. 16, 8:49 AM
- "GAIN generated a profit for the day, considering both trading profit and negative client equity, leveraging its robust risk management framework and heightened customer trading activity following the surprise announcements by the SNB," says GCAP as its stock tumbles in sympathy with the FXCM implosion.
- "Following the events of Jan. 15, we remain well capitalized, financially sound and well positioned to grow market share and, as one of the industry's leading consolidators, take advantage of the strategic acquisition opportunities that will result from yesterday's events."
- Source: Press Release
- Shares -13.7% premarket
- Previously: Gain Capital joins FXCM-related slide (Jan. 16)
Fri, Jan. 16, 7:52 AM
- Gain Capital (NYSE:GCAP) tumbles 18% premarket after the move in the Swiss franc yesterday looks to have wiped out forex-merchant peer FXCM.
- Previously: Interactive Brokers slides as FXCM blows up (Jan. 16)
- Previously: Blow-up: FXCM craters after Swiss franc-related losses (Jan. 16)
Oct. 31, 2014, 12:47 PM
Oct. 22, 2014, 9:24 AM
- "We don't consider the risk-reward as compelling here," says KBW, cutting GAIN Capital (NYSE:GCAP) to Market Perform from Outperform. After a tough year, the stock has popped more than 20% over the last couple of weeks as volatility has returned to foreign-exchange.
- The price target remains at $8.
- Shares -1.8% premarket
May 9, 2014, 12:47 PM
May 9, 2014, 10:34 AM
- GAIN Capital (GCAP -15.8%) tumbles as the lack of action in currency markets leads to a big Q1 earnings miss.
- CEO Glenn Stevens: "Trading conditions ... resulted in a challenging quarter for our retail OTC business, which muted our overall Q1 financial results."
- From the conference call (transcript): On page 5 of the presentation slides is the "'picture worth 1,000 words," says Stevens. It shows the steep downward trend in currency volatility over the past 5 years, a trend - says management - that has not broken in April (though Stevens says April at GCAP was not nearly as weak as that reported at FXCM).
- For now, management is focused on acquisitions (and synergies from) and diversification of revenue streams.
- Source: Press Release
- Previously: GAIN Capital Holdings misses by $0.12, misses on revenue
May 2, 2014, 3:26 PM| Comment!
Dec. 12, 2013, 5:34 PM
Sep. 25, 2013, 5:35 PM
Sep. 25, 2013, 12:46 PM| Comment!
Aug. 8, 2013, 12:49 PM
Jun. 12, 2013, 11:05 AMShares of Gain Capital (GCAP +5.2%) are trading higher early. In a still-embargoed article published today, SA Pro contributor Intangible Valuation (who recommended "observation" of the shares some 20% ago) says the stock may have "some more ground to run" on the heels of its Global Futures & Forex acquisition. | Comment!
Apr. 26, 2013, 4:01 PMGain Capital Holdings (GCAP -6.6%) falls after FXCM withdraws its acquisition proposal. GCAP's acquisition of Global Futures and Forex consumed enough cash to "fundamentally impact the balance sheet and capital synergies that were an important driver of our proposal," says FXCM CEO Drew Niv. The merger would have combined two of the largest U.S.-based players in online currency trading. | Comment!
Apr. 9, 2013, 12:40 PMFXCM's (FXCM +2.3%) bid for Gain Capital (GCAP +26%) would merge two of largest U.S.-based players in online FX trading, as FXCM pushes for organic growth in an industry that has grown rapidly over the past decade but is now challenged by tighter regulation and waning profits. Retail trading currently accounts for about 6% of the $4T per day currency market, and FXCM reported earlier today that its retail and institutional volumes fell in March on both a Y/Y and M/M comparisons. | Comment!
GCAP vs. ETF Alternatives
GAIN Capital Holdings Inc is engaged in providing trading services and solutions in over-the-counter, or OTC, and exchange-traded markets. It offers financial products, including foreign exchange, or forex, and precious metals.
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