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Stock Market & Financial Investment News

News Breaks
April 21, 2014
10:54 EDTWMT, EEFT, MGI, WUMoneyGram continues sell off with Wal-Mart entering space
Shares of MoneyGram (MGI), which enables consumers to transfer money, are plunging for a second straight day after Wal-Mart (WMT) announced that it was launching its own money transfer service. Today's decline also comes in the wake of a downgrade of the stock by research firm JMP Securities in a note to investors earlier today. WHAT'S NEW: MoneyGram is down over 10% today after dropping by more than 18% on Thursday. Wal-Mart on Thursday announced that it would introduce a money transfer service to allow consumers to transfer money to and from more than 4,000 Wal-Mart stores around the U.S. The new service will cost 50% less than competing offerings, the company said. The retail giant currently partners with MoneyGram to provide money transfer services at Wal-Mart stores. ANALYST REACTION: JMP Securities analyst David Scharf responded to the news by downgrading his rating on MoneyGram to Market Perform from Outperform. Money transfers among U.S. Wal-Mart stores generate 13% of MoneyGram's revenue and 9% of its gross profit, the analyst stated. If MoneyGram loses 50% of its revenue from transfers among Wal-Mart's U.S. stores, its pretax income would drop by 28%, the analyst estimated. Scharf said that he was cautious about MoneyGram going forward. WHAT'S NOTABLE: Wal-Mart's new service is being launched in partnership with Euronet Worldwide (EEFT) subsidiary Ria. Another money transfer company, Western Union (WU), saw its stock drop on Thursday, but its shares are rising this morning PRICE ACTION: In mid-morning trading, MoneyGram tumbled 11% to $13, while Western Union gained 1% to $15.50.
News For MGI;WMT;WU;EEFT From The Last 14 Days
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April 20, 2015
12:31 EDTWMTWal-Mart workers claim store closings are retaliatory, Fortune says
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April 17, 2015
15:42 EDTWMTWal-Mart to slash layer of in-store management, Bloomberg reports
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April 16, 2015
06:05 EDTWMTFormer Wal-Mart CEO Duke heads to Carlyle Group, WSJ reports
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April 14, 2015
18:32 EDTWMTCourt rules Wal-Mart can reject shareholder proposal on gun sales, WSJ says
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April 12, 2015
15:43 EDTWMTWal-Mart's Walton family puts shares in newly formed trust, Reuters says
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April 10, 2015
18:29 EDTWMTWal-Mart says Walton family to place 6% of shares in trust, Reuters reports
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April 9, 2015
09:02 EDTMGIMoneyGram signs new agreement with Haggen
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April 8, 2015
12:05 EDTWMTWal-Mart: Pay raises for over 34,000 associates in Florida effective this week
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06:19 EDTWMTWal-Mart de Mexico reports March sales up 9.4% from last year
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05:16 EDTWMTWalmart announces pay raises for over 72K associates in TX go into effect
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