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 foreign-exchange broker FXCM
So what: With no news out, today's action smells a lot like takeover speculation. Ever since Charles Schwab
Now what: If you ask me, chasing after takeover speculation is among the least fruitful things that an investor can do. And in this case in particular, it seems a bit of a stretch. FXCM just went public in December -- if there had been bu yout interest it's likely that the company and its bankers would have pursued that prior to the IPO. Additionally, forex doesn't have the same widespread acceptance that options now enjoy. Maybe that will happen at some point -- and if it does it will be better for FXCM investors if it doesn't get acquired -- but I'm not sure larger brokers see a pressing need right now to expand their forex capabilities. Could an acquisition happen anyway? Sure, but investors are better off focusing on the company's fundamentals.
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