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After Knight Capital Group (Nasdaq: NITE ) spent the past year going between a three-star and a four-star rank, enough top-performing CAPS members piled on the bullish side recently to bring the stock to the coveted five-star level. A total of 356 members have given their opinion on the electronic trading company, with many of them offering analysis and commentary explaining the recent optimism.
Despite lower trading activity and market volatility compared with the wild fourth quarter of 2008, when investors were bailing out of companies like Bank of America (NYSE: BAC ) , Knight Capital continued to gain market share in the fourth quarter of 2009. CAPS members like the resilience that Knight Capital has shown in a tough market and believe it will be in a good position when some form of normalcy returns.
It holds a strong position in the number of U.S. equities trades it handles, rivaling that of NYSE Euronext (NYSE: NYX ) and Nasdaq OMX Group (Nasdaq: NDAQ ) . And many investors like the company's plan to get into carbon trading, a market that could provide significant benefits to it, certain energy companies, and other trading companies like IntercontinentalExchange (NYSE: ICE ) and CME Group (Nasdaq: CME ) in the future. While Knight Capital sold off its options market-maker subsidiary to Citigroup (NYSE: C ) in 2004, it recently bought competitive market-maker rights on the International Securities Exchange's options exchange, further expanding its services.
With big revenue growth expected in its global markets segment over the next several years and expected annual savings from cost-cutting initiatives like the rights on the options exchange, CAPS members like Knight Capital's long-term outlook.
Do you think Knight Capital Group deserves its improved status? Add your thoughts in the comments box below, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.
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