FXCM Has Tripled in December, Still Down Nearly 90% This Year
Retail forex broker FXCM Inc.FXCM +25.79% sure seems to be a market plaything at the moment.
Trading in the stock has been volatile the past two weeks. Starting on Dec. 14th, when shares bounced 52%, it’s posted four daily gains of 35% or more, interrupted by a 16% decline and a few other down days. Still, the stock is up another 23% in afternoon trading to $19.35 Tuesday, and FXCM has now nearly tripled for December.
There’s been a lack of market-moving news on the stock of late, so there’s no easily identifiable catalyst for what’s piqued investor interest. This as short interest fell to start December, sitting at 7% of shares outstanding as of the 15th. A company spokeswoman couldn’t be reached for comment.
Stock-trading volume has spiked this month, capped by the 6.3 million shares which changed hands yesterday as FXCM climbed 41% and the 4.8 million that’s traded today as of mid-afternoon. There’s 5.4 million shares outstanding after a 1-for-10 reverse stock split which took place on Oct. 1.
The churning of the company’s equity of late caps a tumultuous year for FXCM. The company was walloped in January by Switzerland’s central bank ending efforts to keep the country’s currency from rising against the euro, prompting a surge in the franc and pain for many investors. That extended to FXCM, which as a result of client losses ended up with a below-zero equity balance for a time and was forced to shore up the balance sheet. Asset sales and outside financing with double-digit interest rates followed.
After tumbling 87% on Jan. 20 after disclosing the damage done by the central bank’s move, FXCM shares went sideways until early May before a slow slide from a split-adjusted $20 to this month’s low of $5.26. Briefly getting back to $20 this morning, those brave enough to have caught FXCM’s knife several weeks ago could have quite the return if they still hold the stock.
Shares, though, will still be one of the biggest losers of 2015.
Source: WSJBlog – FXCM Has Tripled in December, Still Down Nearly 90% This Year
