FXCM stock discussion

[xandman]

Not a bad call. I took a gamble (yes, gamble, I said it!) myself.

meh. This kind of trade is dangerous. I would expect a return of several multiples or almost complete loss of capital.

Now let's do some back of the napkin calculations.

Shares outstanding almost 50 million. @ 2.50 a share is $125 million at the least. Why would Luk lend 300 mill if they didn't see any value. No under valued physical assets here. it's all liquid assets published on financials.

Don't misunderstand.. After trading losses are (un)settled, we could still get wiped out.

 

[newwurldmn]

It's the largest retail forex customer base. That's worth money.

 

[i960]

meh. This kind of trade is dangerous. I would expect a return of several multiples or almost complete loss of capital.

Now let's do some back of the napkin calculations.

Shares outstanding almost 50 million. @ 2.50 a share is $125 million at the least. Why would Luk lend 300 mill if they didn't see any value. No under valued physical assets here. it's all liquid assets published on financials.

Don't misunderstand.. After trading losses are (un)settled, we could still get wiped out.

I'm not holding this for 6 months. I already closed out the short side puts and the majority of my calls. The remainder are entirely risk free with all initial exposure entirely removed and some alright profits taken.

At the size I went, we were talking an initial 2000$ or so risk in the worst case, hardly a life or death gamble.

 

[Daal]

Short FXCM 2.80, stop at 3.20. I expect at least $2 prob $1.5. Good risk/reward, I hope im right

 

[Daal]

Will take some partial profits on the way down

 

[MoreLeverage]

Took some long losses, considering a short view but not wild about the 100% borrow. Worth a look here.

http://www.streetinsider.com/Analyst Comments/Come to Your Senses... FXCM (FXCM) is Worth No More than $0.85Share - Analyst/10189369.html

Edit: misread the borrow, more like 8%.

 

[Daal]

Took some long losses, considering a short view but not wild about the 100% borrow. Worth a look here.

http://www.streetinsider.com/Analyst Comments/Come to Your Senses... FXCM (FXCM) is Worth No More than $0.85Share - Analyst/10189369.html

IB says its a 11% borrow rate plus this is a momo stock, they tank really fast

 

[MoreLeverage]

Thanks, Daal. I had misread it. Might consider shorting outright instead of short bias options.

 

[satchel]

Breaking: FXCM potential buyer Alpari UK.

rumorville back on.

if so, this is a sign of strength not a bail out.

 

[Daal]

Locked 1/3 profits at 2.37 avg or so. Holding rest for bellow $2