Forex.com’s parent company is now up 37% since releasing Q2 results, and up 89% for 2013.
At the risk of repeating ourselves too much over the past few days and weeks, we still feel it important to point out that forex broker Gain Capital saw a second day in a row of strong demand for its stock, after the parent company of Gain GTX and Forex.com reported stellar Q2 results.
To remind everyone of the Q2 highlights, and to put things in perspective, Gain Capital did Revenue of $73 million in Q2. Its previous best quarter was Q4 of 2008, when Gain earned Revenue of $57 million. Last quarter’s figure was $50 million. That’s an amazing leap in just one quarter!
And the stock market has taken notice. After rising on Thursday by 21%, GCAP rose another 13% on Friday — if you held Gain Capital shares when the quarter was announced, you’re now up by more than 37% in just two days. Since the beginning of 2013 Gain shares are up 89%.
Gain’s rival FXCM has been no slouch either, up 77% for the year, and closed Friday at its best-ever closing price of $17.99.
So what does this mean for the forex world. Well, not much if the trend reverses itself. Wall Street can be very fickle, loving a stock and a sector one day, and forgetting it even exists the next. But since these share price rises have been based on real results, we don’t think that we’re done just here. And for forex brokers contemplating IPOs — and we know that there are several out there — this is very good news indeed. Combined with the nice performance of the recent Plus500 IPO — up 14% to date (we’ll have more on that soon) — it is a great time to look at forex IPOs.