MF Global announcement
- Thread starter 1nibbler
- Start date
Go for the dilutive finacing route!
http://online.wsj.com/article/SB10001424052970203658804576635361082548304.html
"MF Global Told to Boost Capital"
http://www.bloomberg.com/news/2011-...d-capital-in-u-s-after-regulator-s-query.html
"MF Global Increased Capital in U.S. After Regulatorâs Query"
www.reuters.com/article/2011/10/17/mfglobal-idUSL3E7LH0F220111017
"Regulator directed MF Global to boost its capital - WSJ"
Headline sounds scary, but ultimately the "news" is old - the capital increase took place in August.
As long as customers don't get too scared, it should be OK for the company.
"MF Global Told to Boost Capital"
http://www.bloomberg.com/news/2011-...d-capital-in-u-s-after-regulator-s-query.html
"MF Global Increased Capital in U.S. After Regulatorâs Query"
www.reuters.com/article/2011/10/17/mfglobal-idUSL3E7LH0F220111017
"Regulator directed MF Global to boost its capital - WSJ"
Headline sounds scary, but ultimately the "news" is old - the capital increase took place in August.
As long as customers don't get too scared, it should be OK for the company.
And here we go again:
http://www.bloomberg.com/news/2011-...-by-moody-s-as-corzine-adds-trading-risk.html
"MF Global May Be Lowered to Junk by Moodyâs as Corzine Adds Trading Risk"
http://www.bloomberg.com/news/2011-...-by-moody-s-as-corzine-adds-trading-risk.html
"MF Global May Be Lowered to Junk by Moodyâs as Corzine Adds Trading Risk"
And here we go again, part two, with the shares down 46%
http://www.bloomberg.com/news/2011-...ns-on-deferred-tax-restructuring-charges.html
"MF Global Shares Plunge Most Since May 2009 as Net Loss Widens on Charges"
The firmâs credit ratings were cut yesterday by Moodyâs Investors Service on concern that the broker wonât meet earnings targets and isnât sufficiently managing risk. Moodyâs lowered the long-term ranking to Baa3 from Baa2 and left MF Global on review for a further downgrade.
***
http://www.bloomberg.com/news/2011-...ns-on-deferred-tax-restructuring-charges.html
"MF Global Shares Plunge Most Since May 2009 as Net Loss Widens on Charges"
The firmâs credit ratings were cut yesterday by Moodyâs Investors Service on concern that the broker wonât meet earnings targets and isnât sufficiently managing risk. Moodyâs lowered the long-term ranking to Baa3 from Baa2 and left MF Global on review for a further downgrade.
***
famous last words.
* Q2 adj loss/shr $0.09 vs est net income of $0.05/shr
* Moody's downgrades co's unsecured senior debt to near junk
status
(Adds details, analyst comment)
Oct 25 (Reuters) - U.S. broker-dealer MF Global Holdings Ltd
<MF.N>, led by former Goldman Sachs Group Inc <GS.N> chief
executive Jon Corzine, posted a surprise second-quarter loss, as
recent market volatility and higher costs took a toll on the
company's results.
On Monday, Moody's downgraded MF Global's senior unsecured
debt rating to a notch above junk status, citing its exposure to
European sovereign debt and increased risk appetite.
MF Global was asked by the industry regulator to boost its
net capital following concerns about its exposure to European
debt, according to a SEC filing last month.
As of Sept 30, MF Global maintained a net long position of
$6.3 billion in a short-term European debt, including Belgium,
Italy, Spain, Portugal and Ireland.
Macquarie analyst Ed Ditmire said the company's Eurozone
debt position has barely changed since the previous quarter and
is "worrisome."
However, the company said it curbed its proprietary trading
activities mainly in equities and fixed income, amid volatile
market conditions, that led to a 73 percent drop in revenue from
trading for its own account.
"Reflecting the stressed markets in the quarter, we
deliberately chose to reduce overall market exposure in most
principal trading activities and focused on preserving capital
and liquidity," said CEO Corzine.
For the second quarter, the net loss attributable to common
shareholders was $191.6 million, or $1.16 a share, compared with
a loss of $94.3 million or 59 cents a share, a year ago.
On an adjusted basis, the company reported a loss of 9 cents
a share.
Analysts, on average, were expecting the company to post a
profit of 5 cents a share, on revenue of $301.4 million,
according to Thomson Reuters.
Total revenue fell 2 percent to $499.7 million from the
previous year.
The company's shares closed down 3.5 percent at $3.55 Monday
on the New York Stock Exchange.
(Reporting by Tanya Agrawal and Anil D'Silva in Bangalore;
Editing by Maju Samuel and Supriya Kurane)
((tanya.agrawal@thomsonreuters.com; within US +1 646 223 8780;
outside U.S +91 80 4135 5800; Reuters Messaging:
tanya.agrawal.reuters.com@reuters.net))
It looks like it is LT capital management allover again.
Quote from zdreg:
famous last words.
lol very true. I think when the stock is down 44%, at least one customer will panic.
More importantly, from the PR this morning announcing "earnings"
http://finance.yahoo.com/news/MF-Global-Reports-Second-bw-3226318076.html?x=0&.v=1
As of September 30, 2011, MF Global maintained a net long position of $6.3 billion in a short-duration European sovereign portfolio financed to maturity (repo-to-maturity), including Belgium, Italy, Spain, Portugal and Ireland. The laddered portfolio has an average weighted maturity of October 2012 and an end date maturity of December 2012, well in advance of the expiration of the European Financial Stability Facility in June 2013. (see supplemental table for further details)
****
comment:
It seems like the company is trying to tell customers "don't worry, the $6.3 billion should, hopefully, maybe, be OK because the EFSF is in place"
Wowsers ...