March 29, 2011
-- While we understand that a number of other firms would like to go public soon – and are looking at stock markets including the NYSE and Nasdaq in the US, the London Stock Exchange, and the Toronto Stock Exchange as listing options – the road to becoming a public company will in our view be a very difficult one for other Forex firms, certainly for the foreseeable future.
Why difficult? We divide our answer into two parts:
1) Forex Industry Issues.
a. Low trading multiples. Shareholders of Forex companies have to question whether they want to be valued at the relatively low valuation multiples which have been set in the market for FXCM and Gain. (For more on public and M&A valuation multiples see page 26 of our updated-for-
2011 Online Forex Industry Report).
For the rest of this report see LeapRate’s Forex Industry News at http://www.leaprate.com/News.html
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