Van der Moolen Gives It Back

The stock is poised to sell off after a disappointing third quarter
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A day after shares of

Van der Moolen

(VDM)

rallied 10%, the specialist trading firm was poised to give back all of that gain following the release of another disappointing earnings report.

The Dutch-based trading company said Tuesday that it lost 35.3 million euros, or $45 million, in the third quarter, largely due to an impairment charge related to its

New York Stock Exchange

specialist business. In the year-ago quarter, Van der Moolen posted a profit of 2.3 million euro.

In premarket trading, shares of Van der Moolen were selling off sharply, falling 48 cents, or 7.8%, to $5.66.

On Monday, the stock rose nearly 10% on the news that the company was pushing up the release date of its third-quarter earnings by two days. There was speculation in the market that Van der Moolen would report better-than-expected numbers.

But that was not the case, and the company did not try to sugarcoat the quarter.

"Q3 has been a disappointing quarter for VDM, both in revenues and because of the impairment we had to take on our US business and the tax positions in the US,'' a company press release said. "Although revenues from our European operations have been developing according to budget, our NYSE Specialist operation saw a further decline.''

Even worse, the company says it expects lower revenue from its U.S. operation in the future because of the Big Board's new hybrid market, which combines electronic trading with floor-based trading.

Specialist firms such as Van der Moolen and

LaBranche

(LAB)

have seen their profits take a hit as more trading on the Big Board is done electronically.