MoneyGram International (MGI), which provides global money transfers and bill-payment services, fell 11%, to 19, on Oct. 18 because of losses in mortgage-related investments. By Oct. 31 it had dropped further, to 15.95. MoneyGram traded as high as 30 in July. The huge slide has generated buzz that MoneyGram may be looking for a buyer. It has hired JPMorgan Chase (JPM) to review its payment systems business, whose third-quarter income tumbled 12%. John Bendall, CEO of Hermitage Capital, which owns shares, says MoneyGram could either spin off its payment systems unit or sell the whole company, which he figures is worth 30 a share. Zaineb Bokhari of Standard & Poor's rates MoneyGram a buy. Its core business is "solid," he says, and its stock "attractive." Bokhari sees earnings of $1.52 in 2007 and $1.80 in 2008.
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