Traders are getting rid of Forex Capital Markets shares after the U.S. Commodity Futures Trading Commission has ordered the broker and its CEO to withdraw from the CFTC registration and imposed a fine of $7 million on the broker. Why? Stay with Sentifi to find all the details about the case, including the financial crowd’s sentiments.
FXCM Inc.: Lost more than half of its market value
Fraud is a serious crime that will receive serious punishment, and that’s evident in FXCM’s case as the broker was charged in a civil monetary penalty for engaging in false and misleading solicitations. Now, it is forced by the authorities to withdraw from the U.S. forex market, and its shares dropped 52.53 percent in response. Its founders William Ahdout and Dror Niv will also receive a permanent ban from the National Futures Association. A lot of traders in Sentifi financial crowd are losing money from the falling share price, and advise others to stay far away from the broker, which doesn’t have a good reputation among the trading communities.
SK Hynix Inc.: Bids for part of Toshiba’s memory chip arm
Hynix is a big name in the chip business as it’s an Apple supplier and the world’s second-largest computer memory chipmaker, but it is planning an expansion of its shares in the global mobile and smart devices market. It has reportedly filed a non-binding bid of at least $1.8 billion for a stake in Toshiba Corp.’s microchip business. The company’s stock has reacted much since the news got reported, but traders are quite excited for the future of Hynix, and they predict the stock will be bullish very soon.
Hitachi Ltd.: Partners with Honda for electric cars
Not to lag behind Suzuki and Toyota and their newfound partnership, Hitachi today announced a joint venture with Honda to develop, manufacture and sell motors for electric vehicles. The reason for the partnership is quite obvious. The market for electric vehicles is growing, and the measures and regulations worldwide for environmental conservation are also increasing. The venture will have an initial capital of over $44.5 million, with Hitachi owning 51 percent stake while Honda owns the rest. Hitachi shares move slightly upward, but many traders are already banking on Hitachi’s prospect.
Twilio Inc.: Mixed sentiments
Twilio, which provides the communications backbone behind tools like Whatsapp, reported a wider quarterly loss, but on an adjusted basis, the company broke even for the first time since going public last year. The company’s shares rose 3.7 percent in after-hours trading, but then dropped 2.7 percent. A big number of traders are confident that the shares will be up by more than $2 in the morning, and ask everyone else to be patient. That said, a number of them are not very optimistic about the company’s prospect as they believe the company needs a killer earning report for the shares to perform well, and they’re predicting a sell-off will happen soon.
Munich Re: Ups dividend
German reinsurance giant Munich Re is not in the best position. Despite that fact that it met profit targets for 2016 and would increase its dividend from €8.25 to €8.60 , its result was lower than last year. Specifically, profits fell 16 percent. Traders are very skeptical about the company’s prospect as the company is still fighting extremely low interest rates, which makes it more difficult for it to earn money on the premium paid by its clients. They predict a bullish future for the stock, and advise others to take caution before buying.
Michael Kors Holdings Ltd.: Dubbed “a dead duck” by traders
Weak is the word to describe the company’s Q3 results. Sales fell 3.6 percent. Wholesale net sales declined by 17.8 percent. Even worse, the company has lowered its guidance for the next quarter. Needless to say, traders were not fond of the results, triggering a decline of more than 14 percent in the company’s market value. The stock price is now sitting at $36.82. That said, a few traders make the case for a bullish reversal, citing the last time the company’s stock hit the $30 range, it bounced back to $60 the next day. But, the bearish sentiment is the dominant one in the market.
BNP Paribas SA: Another disappointing earning report
France’s largest bank posted lower-than-estimate earnings due to sluggish economic growth, casting doubt over its growth in its home market. The bank pledged to invest €3 billion to upgrade digital-banking services and increase automation. Its stock fell 4.77 percent following the news, and the bank said it will remain difficult to return to revenue growth at the French retail unit over the coming year. That said, it is painting a much brighter prospect. By speeding up digital investments, the bank expects profit to rise by more than 6.5 percent annually. Many traders still have faith in the bank, and predict a bullish reversal for the bank while others are selling its stock to recoup the loss and make any profit possible.
Bombardier: Traders still have doubt despite new funding
The Canadian multinational aerospace has received a $372.5 million in loans from the Canadian federal government, but its stock dropped 1.16 percent. The company is not Sentifi financial crowd’s favorite as the company is terrible at managing money. The company tends to undertake ambitious projects that cause it to run out of money before it can complete those projects. The crowd also said it’s a terribly managed company, evident in its market cap of $2.64 billion, less than that of Hudson Bay Co., a retailer with 80 stores. Thus, they are recommending everyone to stay away from Bombardier stock.
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