Following disappointing Q4 2011 report Gain's stock tumbles almost 20%

Following yesterday's disappointing full 2011 year and Q4 2011 report Gain's stock today took a beating and dropped almost 20%. FXCM which didn't report yet was too affected as investors expect it to present similarly disappointing results and dropped 5%.

Gain reported a $3.3 million EBITDA loss in Q4 2011 and significant drop in revenue while the whole 2011 year showed a slight 4% decrease in Net Revenue comparing to 2010. Gain did show impressive growth in 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 trading volume +18.8%, +298.5% growth in institutional forex volume and 20.9% growth in client assets. Wall Street investors who only care about the bottom line were clearly unimpressed.

With current market cap of just $180 million Gain Capital the owner of the lucrative (and very SEO friendly) forex.com domain is becoming a very attractive target to bargain hunters. The usual rumors in the market have that Gain may soon be acquired and point at the usual suspect(s) - this however may still be some time away.