Tag - Trad

The Russell 2000 (NYSE:IWM) declined as news of an emergency sale of Bear Stearns spread fears of financial turmoil. The small-cap index fell 12.42 points, or 1.87%, to 650.48. The Dow Jones Industrial Average (INDU) gained 21.16 points, or 0.18%, to 11,972.25.

On a year-to-date basis, the Russell 2000 has shed 15.08%, while the Dow is down 9.74% and the S&P 500 has retreated 13.06%.

Stocks small and large opened significantly lower on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

The buyout was unprecedented, as the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal and prevent further financial turmoil. Shares of Bear Stearns were worth over $170 a year ago, but the company was heavily involved in securities backed by subprime mortgages and was dealt a lethal blow by the housing downturn.

The Fed also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%. The central bank will hold a regularly scheduled policy meeting on Tuesday, with investors expecting a steep cut in its target federal funds rate.

TradeStation Group, Inc. (Nasdaq: TRAD) shares are rising on news that the trading software maker’s daily average revenue trades increased 37% during December to 77,033. Total client assets during the monthly period rose 12% to $1.79 billion, from $1.59 billion a year earlier.

During December, TradeStation posted average equities client credit balances of $598 million and average equities client margin balances of $99 million.

In morning trading, TRAD shares are up 0.79%, or $0.11, at $14.02. Over the last 52 weeks, shares have ranged from $9.41 to $14.87.

Trading software company TradeStation Group, Inc. (Nasdaq: TRAD) provided an update this morning on their business metrics for the month ended Nov. 30.

The small cap said daily average revenue trades increased 55% to 103,055, total client assets increased 12% to $1.8 billion, average equities client credit balances increased 9% to $586 million and average equities client margin balances increased 46% to $99 million.

Shares of TradeStation Group (TRAD) were halted in pre-market trading.

Online brokerage firm TradeStation Group, Inc. (Nasdaq: TRAD) reported this morning that its daily average revenue trades increased 38% for the month of October.

The small cap also reported that total client assets increased 15% to $1.8 billion, average equities client credit balances increased 5% to $562 million and average equities client margin balances increased 50% to $93 million.

Shares of TradeStation Group (TRAD) were halted in pre-market trading.

Global economic growth, low inflation and interest rates, and a surge in transnational investing are creating an ideal market for big financial deals. Mergers, buyouts and IPOs are occurring in record numbers and unprecedented sizes. Goldman Sachs officers indicate their company’s IPO pipeline is bigger than any time since the Internet boom, while Carlyle Group executives predict the market will soon see $100 billion in private equity deals. In 2007, the value of global mergers and acquisitions could reach $2.9 trillion, its highest level since 2000. The value of U.S. mutual funds could exceed $10 trillion, a 66% increase in four years. 

The M&A boom is creating exceptional growth opportunities for boutique investment banking firms such as Evercore Partners Inc. (NYSE: EVR). Evercore Partners is primarily in the consulting business, helping large multinational corporations negotiate and complete mergers, acquisitions and spin-offs. This firm is successfully positioned as a boutique investment bank and a viable alternative to Wall Street’s major banks. These larger banks typically pitch clients on a variety of services such as loans and private equity deals in addition to consulting, sometimes creating conflicts of interest that make their advice appear less than objective. Corporate boardrooms, eager to avoid regulatory scrutiny and allegations of conflicts of interest, are increasingly hiring specialized firms such as Evercore Partners to avoid these bias issues. 

While small compared to mainstream investment banks such as Goldman Sachs or Lehman Brothers, Evercore Partners has won many major M&A deals. Last year, the company advised AT&T Inc. (NYSE: T) on its BellSouth acquisition, Credit Suisse Group (NYSE: CS) on its sale of a business unit to AXA (NYSE: AXA), General Motors Corp. (NYSE: GM) on its sale of a 51% interest in GMAC and CVS Caremark Corp. (NYSE: CVS) on its Caremark acquisition. Deals announced during the March quarter include U.K. engineering company Smiths Group PLC’s sale of its aerospace division to General Electric Co. (NYSE: GE), IronPort Systems sale to Cisco Systems Inc. (Nasdaq: CSCO), Novalis’ sale to Hindalco and Aquila Inc.'s (NYSE: ILA) sale to Great Plains Energy Inc. (NYSE: GXP) and Black Hills Power.