As RCAP Shares Crash, Cetera Recruiting and Retention Could Suffer
August 11, 2015 By Janet Levaux, ThinkAdvisor The firm's stock has plummeted 80% this year; the reorganization news isn't helping Shares of RCS Capital (RCAP) continue to weaken in the wake of its announcement on Thursday that it is selling its troubled wholesale distribution unit to Apollo Global Management (APO) for $25 million and forming AR Global Investments, which will be owned 60% by Apollo and 40% by RCAP. Investors and analysts are not happy. The stock is down over 80% year to date. It fell about 9% on Tuesday to close at $2.36, after dropping 30% on Monday. When the company–which includes Cetera Financial Group, 11 broker-dealers and 9,500 advisors–shared its recent earnings and reorganization news on Thursday, its shares also declined about 30% to about $4.25. (It hit a two-year high of about...