Tuesday, December 28, 2010

BGC Partners (NASDAQ:BGCP) 4th Quarter Their Last Good One for Awhile?

BGC Partners (NASDAQ:BGCP) should enjoy a decent fourth quarter, but going forward it appears they're going to struggle because of the falling value of the U.S. dollar and regulatory impacts, according to Goldman Sachs (NYSE:GS).

On the positive side, there should be increased volume for them and the probable migration to electronic trading sometime soon, which should help them immensely.

As with some of the other exchange firms, BCG will struggle if the U.S. dollar continues to decline in value, which appears to be the case in 2011.

There could be pockets of the dollar strengthening, but that will probably only happen when the occasional story out of the EU emerges on the sovereign debt crisis, which always pushes the value of the euro down and the value of the U.S. dollar up.

Goldman maintains their "Neutral" rating on BGC, which closed Monday at $8.50, gaining $0.01, or 0.12 percent. They lowered their price target on them to $8.25.

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