FXCM Posts Best Day Since Reverse Split, But Why?
FXCM Inc. (NYSE: FXCM) shares are trading higher by $1.69 at $6.99 in Monday's session. It is having its best day since its 1-for-10 reverse split, which became effective on October 1.
That's a one day gain of more than 50 percent.
One day removed from its reverse split low ($5.26), the issue bottomed off its print at $5.41 and began to mover higher.
So far, it has climbed into the $7 handle and has found some intraday resistance ahead of its November 23 high ($7.13), only reaching $7.08 before falling consolidating at the $7 area.
On Friday after market close, the company reaffirmed its $130 million buyback program and said it is still "committed" to restructuring its initial bailout arrangement with Leucadia National Corp. (NYSE: LUK).
The company said in May it tripled its money on the $300 million assistance package made with FXCM in January.
Though the specifics have yet to be released, revised terms between the two companies could benefit shareholders.
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