Traders Mostly Shrug-Off News of Molex's (MOLX) Unauthorized Loans

Shares of Molex (Nasdaq: MOLX) are down very modestly following news that the company has learned that an individual working in Molex Japan’s finance group obtained unauthorized loans from third party lenders in Molex Japan’s name. Molex believes the unauthorized loan was for up to $175 million and was used to trade on margin in unauthorized accounts under Molex Japan’s name.

Although the stock was halted to release the news, it wasn't much a halt; the stock initially dropped about 2% upon resumption of trading, however, eager value investors quickly stepped in and pushed the stock higher. At last check, shares of Molex were down just 0.5%, only about 10c lower than when trading was halted.

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