Investors made quick money in U.S. Global Investors Monday. The biggest of those gains did not come from rising share prices in the San Antonio, Texas-based fund firms mutual funds, but in its own stock.
Shares in the asset manager surged nearly 8.5 percent to a high of $22.67 from an opening price of $20.76. The stock closed at $21.94, 4.93 percent above it opening price as the stock price fell in late trading. Trading volume at 1.59 million shares was slightly lower than its average volume of 1.81 million [see chart
U.S. Global Investors officials' had not released any news that would explain the price movement. Erica Borchers, a spokesperson, said that no news had been released by the mutual fund manager.
U.S. Global advises 13 mutual funds, including its flagship funds Global Resources Fund and Gold Shares Fund.
On May 7, the company reported a net income of $2.41 million, or 16 cents per diluted share, for the quarter ended March 31, 2007 on revenue of $12.44 million. That was a decline from a net income of $2.55 million, or 17 cents per diluted share, on revenue of $11.56 million in the same quarter of 2006.
The biggest reason for the earnings decline were one-time expenses incurred by U.S. Global due to a proxy election that resulted in a 2-for-1 stock split in late March. Without those charges, net income was $2.58 million, or 17 cents per diluted share.
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