NEW YORK ( TheStreet) --Shares of FXCM (FXCM) declined for a fourth straight day on Thursday as the struggling foreign exchange trading platform's own earnings and a lower valuation by its biggest lender triggered a new bout of bearish sentiment in the stock.
Shares, which closed at $2.15 last Friday, closed at $1.59 Thursday. falling more than 9% on the day.
That is still double the price at which Leucadia (LUK) values FXCM shares, according to an analysis of Leucadia's first quarter earnings report by Citigroup analyst William Katz.
FXCM was forced to seek a $300 million bailout from Leucadia after the Swiss National Bank unpegged its currency from the Euro Jan. 15. The unexpected move created caused massive customer trading losses and FXCM didn't have large enough margin balances in customer accounts to cover the losses. The resulting customer debit balances of $276 million temporarily caused FCXM to be out of compliance with regulatory capital requirements.
Leucadia values its loan at $947 million, the company disclosed Friday. It entitles Leucadia "to a variable proportion of certain distributions in connection with an FXCM sale of assets or certain other events," as well as the right to force a sale of FXCM starting in January 2018, according to Leucadia's latest 10-Q.
Extrapolating from that $947 million valuation, Katz concludes Leucadia values FXCM at 80 cents per share, according to a report the analyst published May 11. Katz's own target price is 50 cents per share.