Financial Stocks Paring Earlier Declines; Paulson Capital Surges Following New Funding Plan, Reverse Stock Split

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Top Financial Stocks

JPM -0.15%

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C -0.50%

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Financial stocks have reversed earlier losses and are now little changed near the close with the NYSE Financial Sector Index sinking 0.2% and the S&P Financial 100 Index gaining about 0.1%.

In company news, Paulson Capital Corp. ( PLCC ) is up nearly 22% at $1.35 a share, holding near the top of its session range and the struggling investment firm last night disclosing a $5.25-million financing effort as well as a proposed reverse split of its stock.

According to a new regulatory filing, PLCC late last month arranged for a private placement of equity units with an unidentified investor or group of investors. The offering consisted of 287,773 shares of common stock and 500,000 shares of Series A preferred stock as well as five-year Class A and Class B warrants to purchase additional stock.

Each preferred share is convertible into 2.305640603 shares of common stock. The Class A warrants are exercisable at $0.35 each starting in six months to buy up to 7.5 million shares of Series B preferred stock that can be exchanged on a 1-for-1 basis for PLCC common stock. The Class B warrants will purchase up to 13.6 million Class B shares.

The company also said it will soon seek shareholder approval for a reverse stock split of between 2-for-1 and 10-for-1 at any time over the next 18 months following the shareholder vote.

In other sector news,

(-) ICE, Reportedly has hired three investment banks to assist with plans to sell Euronext exchanges in Paris, Lisbon, Brussels and Amsterdam to raise a portion of the $8.2 billion it is offering to acquire NYSE Euronext ( NYX ).

(-) EPAY, Q4 EPS of $0.32 beats by $0.03 per share. Revenue rises 5.9% over last year to $65 mln, matching the consensus call. Also announces the purchase of financial messaging firms Sterci SA and Simplex GTP Ltd. Terms will be disclosed at a later date.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: NYX , PLCC

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