FXCM's shares jump on bogus takeover talk

FXCM's shares rose almost 11% in an intra-day trading yesterday and closed the day with a %7.7 gain on a speculation that FXCM may be an Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term target. A speculative analysis published on Seeking Alpha by someone called Rougemont was responsible for this jump as the author cited FXCM among several potential takeover targets. Seeing this report and finding it completely laughable I ignored it until I saw the result of it - it's amazing how mere speculation can drive huge movements in public companies' share price. No wonder that pennystock promoting schemes are so popular.

The author of the report compiled a list of several companies and speculated that all of them are viable acquisition targets. You don't need to be an expert to know that any company with solid business and sound financials is always an acquisition target for someone bigger. I can make such a report anytime of the day, it's all about name dropping and a catchy title. In fact I'd like to break the following news: Facebook, Twitter and Groupon are acquisition targets too. Why? Just because I felt like writing it.

This speculative list was published following Charles Schwab's acquisition of optionsXpress for $1 billion and FXCM is mentioned there with no apparent reason except that it trades at a discount relatively to other trading firms. The funny thing is that FXCM has completed its IPO only three months ago and I'm sure that it received quite a few acquisition offers prior to being listed and obviously rejected them all. Knowing a bit about the company and its management I know that they do not intend to sell out that quickly especially after liquidating some of their investments already. They are not hungry for cash right now. FXCM, as it announced, intends to be a consolidator in the retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term business not a 'consolidatee'.

Other analysts have expressed similar opinion to mine with regards to this acquisition list though using much more delicate wording, Citi's analyst called this takeover talk 'misguided' pointing out to facts, which obviously didn't stand in Rougemont's way, such as that “directors and executive officers, which own roughly 44% of FXCM, are locked-up through May 30, 2011, and we believe cannot sell ahead of that lock-up based on public filings.”