Molex (MOLX) Shares Flat Despite News of $175M in Unauthorized Loans
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Molex Incorporated (NASDAQ: MOLX) said Friday that is has learned of an estimated $175 million in unauthorized loans that were obtained by an individual working in the company’s Japanese finance group.
Shares of the global electronics component company are down only modestly following the news as traders are, for the most part, seemingly ignoring the situation.
The loans were obtained in Molex Japan’s name by the individual and are believed to have been traded in unauthorized accounts. The company also believes that the individual misappropriated cash from Molex which may have resulted in a loss in the range of $15 million.
In a statement released by the company, it said that the individual has admitted to forging the documentation to arrange the transactions.
Analysts from Ticonderoga Securities see little risk to the company and any weakness in the company’s stock should be used as a buying opportunity.
“The financial impact to Molex appears to be immaterial in our view and we believe this incident takes away from the improving trends the company has delivered over the past few quarters,” Ticonderoga analysts stated. “We remain confident in the Molex recovery story and the improving trends in the tech world, which has been supported by our supply chain field checks.”
Shares of Molex are down 14 cents to $21.30 in late market movement on Friday.
Shares of the global electronics component company are down only modestly following the news as traders are, for the most part, seemingly ignoring the situation.
The loans were obtained in Molex Japan’s name by the individual and are believed to have been traded in unauthorized accounts. The company also believes that the individual misappropriated cash from Molex which may have resulted in a loss in the range of $15 million.
In a statement released by the company, it said that the individual has admitted to forging the documentation to arrange the transactions.
Analysts from Ticonderoga Securities see little risk to the company and any weakness in the company’s stock should be used as a buying opportunity.
“The financial impact to Molex appears to be immaterial in our view and we believe this incident takes away from the improving trends the company has delivered over the past few quarters,” Ticonderoga analysts stated. “We remain confident in the Molex recovery story and the improving trends in the tech world, which has been supported by our supply chain field checks.”
Shares of Molex are down 14 cents to $21.30 in late market movement on Friday.
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