Boston, MA 03/13/2014 (wallstreetpr) – The recent surge of Harbinger Group Inc. (NYSE:HRG) in the market seem to have had a major impact to some investors who continue to reap heavily from the gains. Leucadia National corp is reported to have reaped over 50% in gains in less than six months as a result of purchasing Philip Falcone’s Harbinger group shares.
Falcone has sold $158 million worth of Harbinger Group shares to Leucadia as he tries to raise enough capital to meet cash redemption request. Falcone is currently planning to build a publicly traded company after reaching a settlement with the US authorities which bars him from the hedge fund business.
Harbinger capital had agreed in August to meet investor’s redemptions as part of an $18 million settlement with the Securities and Exchange. The settlement bans Falcone from the industry for five years after being found guilty of improperly borrowing money for personal income tax payment. Harbinger Group Inc. (NYSE:HRG) has already sold 5.1 million shares to other undisclosed investors as a result of the legal cases.
Harbinger Group Inc. (NYSE:HRG) last reported its financial results on February 6, 2014 for the first quarter in which earnings per share fall short of analyst’s estimates coming in at $0.28 against estimates of $0.41. The holding company revenues for the first quarter came in at $1.5 billion against prior year same quarter low of $1.2 billion. The surge in revenue for the quarter was mainly as a result of the acquisition of the hardware and home improvement product line
Harbinger Group net loss from common and participating stockholders for the quarter came in at $39 million with operating income dropping by 16.8% to a low of $179.3 million, from a high of $215.4 million for the same quarter the earlier year. Lower operating income was mainly impacted by lower operating profit emanating from the insurance segment.
Harbinger Group Inc. (NYSE:HRG) was up on Wednesday trading session by 1.34% to closing the day at a high of $12.90