Another Look at FCStone
FCStone (FCSX) is a compelling story that fell off the face of the market in 2008. They went from reporting a $78M profit in the year that ended in August 2008 to being worth hardly more then $30M. This was largely due to a trading account hit of over $100M that put serious doubts into the future of this company. FCSX has also taken a big hit from greatly reduced interest income due to the swooning short term interest rates.
The need for risk management and hedging in the commodities sector has never been greater. Once FCSX gets past the issues created by the huge trading loss, I'd expect FCSX to regain its luster that saw the stock trade above $50 last year. The company has stayed afloat in this turbulent times without the need for dilutive financings. Somehow FCSX has been more impacted in the stock market then the major banks like Bank of America (BAC) and regional banks like BBT or STI. FCSX has no exposure to the mortgage or commercial real estate market. Yes, they were hit...