Why MoneyGram Shares Soared (MGI)

Why MoneyGram Shares Soared

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of MoneyGram (NYSE: MGI ) soared today by as much as 14% after the company announced a new deal with major retailer Wal-Mart Stores (NYSE: WMT ) .

So what: Through a freshly inked three-year agreement, MoneyGram will continue providing its branded financial services throughout Wal-Mart stores in the U.S. and Puerto Rico, including money transfers, bill payments, and money orders. It's an extension of the two companies' 13-year relationship.

Now what: This is the fourth time that MoneyGram has renewed the deal with Wal-Mart since 1999, and it technically begins in April of next year. Investors are cheering today for MoneyGram's continued presence throughout Wal-Mart's wide network of stores. The deal renewal removes any potential uncertainties, and the bulls were out in full force today.

Interested in more info on MoneyGram? Add it to your watchlist by clicking here.

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