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GFI Group Is Not Your Typical Brokerage

 Jun 12, 2008 11:09 AM UTC
Return Risk
+18.79% HIGH
Tracked Blogger
Symbol Sentiment Start Return Closed
GFIG Positive 06/12/08 -56.47% --

Graphic_arrow1 Via Long Investment Ideas from Seeking Alpha:  

I have followed GFI Group (GFIG) for sometime.  The stock is currently well off its highs but at its current levels still represents a rare opportunity for investors to profit from one of the world most rapidly growing and changing components of the financial market. 

The trading of derivatives has been at the heart of the current credit crunch; this is primarily because the market for individual securities can become illiquid incredibly fast.  Credit derivatives currently account for a little of 30% of GFI Group's revenue.  This slight reliance on derivative trading, which has been disrupted by the credit crisis, has contributed to the decline in price of the company’s stock.  Even with a slow down in the derivative business, the company has still managed to grow its top and bottom lines at a healthy clip.  I strongly believe that significant upside remains for the company and if you are interested, my detailed analysis of GFI Group can be found here.  


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