MF Global Shares Should Have Dropped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of troubled broker MF Global (NYS: MF) stayed perfectly steady today. However, that was only because trading in MF Global's shares was halted. If that hadn't been the case, the shares would have been falling faster than a bowling ball off the top of the company's midtown Manhattan headquarters.

So what: After an incredibly turbulent week that included a major earnings disappointment and the painful reveal of massive bets on European sovereign debt, MF Global filed for Chapter 11 bankruptcy protection. The company, run by former Goldman Sachs (NYS: GS) head Jon Corzine, had hoped to turn itself into a powerhouse in the image of Goldman, but it was looking a lot more like Lehman Brothers for most of last week. Though the company hired Evercore Partners (NYS: EVR) to explore possible sale options, there were no solid takers in time to save it.

Now what: You hear that sound? That's the fat lady singing. The process forward is probably going to consist of seeing MF Global sell off its yet-attractive crown jewels to pay back as much as it can to creditors. Equity holders? Yeah, they'll probably end up with bupkis.

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