Gain Capital's Share Price Skyrockets, Crosses the $9 a Share Level

Equity markets usually falter on the thought of war or natural disasters however, one financial services firm has seen its share price increase by 21% and counting. Gain Capital, one of the world's largest FX broker, has been on the receiving end of positive activity in its company valuations at the New York Stock Exchange.

The fourteen year old firm headquartered in Bedminster, New Jersey has seen a flurry of activity in its shares price, this is the second time in as many months where the firms share price has been drifting north. Today has been remarkable for the firm, as the share price has exceeded the previous 52 week high and broke the nine dollar mark to hit a intraday high of $9.20.

Why, what and how?

A spike in stock activity usually is due to major internal or external fundamentals as seen with Nokia’s 47% boost earlier this week. However, nothing new or out of the ordinary with Gain Capital. 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 Magnates spoke to several analysts who redirected the question, “Why is it (the share price) moving so much?” Gain Capital was unable to comment.

The facts

• the firm reported brighter than bright second quarter earnings
• volumes have been up in 2013
• acquisition of GFT

Another piece of useful or interesting news was the recent reduction in share ownership by one of the firms directors. Mark Galant sold 100,000 shares of the company’s stock, Mr Galant sold the shares at an average price of $7.47, for a total transaction of $747,000.00 on the 27th of August.

Lucky number 9

Gain Capital has a soft spot for the number nine, the firm went to IPO in 2010 and issued 9 million shares at $9 per share.

2013 has been favourable for firms in the derivatives space, last year major players recorded losses in excess of 50% however the tables have turned this year, driven primarily by Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in major currencies such as the yen and Aussie dollar. Furthermore, movement in the safe haven yellow metal has boosted volumes across the board.

Gain Capital reported net revenue of $122.8 million in the second quarter of 2013, compared with $78.9 million in 2012. Richard H. Repetto, an analyst at Sandler O'Neill said in a comment to Forex Magnates: "Gain Capitals second quarter results were strong driven by their increased RPM."

Anyone who can fill in the blanks about the surge can enter a draw to win an iPad! We don't want to speculate on the causes however a spike of this nature could be the beginning of something special or the end of something incredible.