Tom Reese/Paul Rubillo, Dividend.com
GFI Group (GFIG) is taking a hit this morning, after news broke that its supposed deal with Tullett Prebon has fallen apart. GFI Group provides brokerage services, market data, and analytics software products to investment and commercial banks, large corporations, insurance companies, and hedge funds in North America, Europe, and Asia-Pacific.
A big de-leveraging in the credit markets have hurt the company’s revenue growth. Both firms act as intermediaries for dealers trading bonds, derivatives, commodities and other financial instruments. A consolidation would have been a good scenario for GFI Group.
The Bottom Line
GFI Group has been in a free-fall since late last year, when shares peaked at a split-adjusted $25 per share. We have avoided the shares since we initiated coverage in early June, when shares were trading at $12 per share. We would still remain on the sidelines as the stock tries to sustain itself above recent 52-week lows.
GFI Group (GFIG) is not a recommended dividend stock at this time, holding a Dividend.com rating of 2.5 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system here.
