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MF Global (MF:NYSE) Falls 35%

Posted June 18, 2008

“After closing at $13.26 yesterday, MF opened at $10.80 this morning and is currently at $8.59, as of noon. That’s a 35% fall in less than 24 hours.” — Stephanie Grimmett

by Stephanie Grimmett

Baltimore – (TFN): Options and futures broker MF Global (MF: NYSE) continued its slide in this morning’s trading. After closing at $13.26 yesterday, MF opened at $10.80 this morning and is currently at $8.59, as of noon. That’s a 35% fall in less than 24 hours.

MF Global announced unfavorable earnings guidance for its fiscal first quarter yesterday evening after markets closed. The company expects revenue to reach only $360 million to $390 million for the quarter.

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Analysts were expecting $1.24 billion, but according to MF, tightened credit spreads have severely influenced the company’s earnings.

On top of the poor earnings estimates, MF also told its investors it was diluting its stock to pay for a bridge loan due in December. The broker will offer $150 million in non-cumulative perpetual convertible preference shares and another $150 million in convertible senior notes, both providing the buyers an option to purchase another 20% in the private sales.

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Posted by Stephanie Grimmett · Filed Under US Stocks and Markets 

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