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Monday, August 6, 2012

What happened to Knight Capital Group (NYSE:KCG) Buy Now ?

( #KCG )Knight Capital Group, Inc. (Knight) is a global financial services firm that provides access to the capital markets across multiple asset classes to a network of clients, including buy- and sell-side firms and corporations. The Company operates in four segments: Market Making, Institutional Sales and Trading, Electronic Execution Services, and Corporate and Other. Its Market Making segment principally consists of market making in global equities and listed domestic options. Its Institutional Sales and Trading segment includes global equity and fixed income sales, reverse mortgage origination and securitization, capital markets and asset management activities. The Company’s Electronic Execution Services segment offers access to markets and self-directed trading via its electronic agency-based platforms. The Corporate and Other segment houses functions that support its other segments. In June 2012, Knight acquired certain assets and liabilities of Penson Futures3.07
-0.98(-24.20%)
Real-time: 9:46AM EDT
NYSE real-time data -Disclaimer
Currency in USD
Range2.59 - 3.50
52 week2.27 - 14.00
Open2.81
Vol / Avg.3.41M/12.58M
Mkt cap298.56M
P/E2.76
Div/yield -
EPS1.10
Shares98.21M
Beta0.18
Inst. own88%
Knight Capital has issued a press release detailing the $400 million in equity financing it is receiving from a bunch of Wall Street firms. From Knight:
Knight Capital Group, Inc. (NYSE Euronext: KCG) announced $400 million in equity financing with Wall Street firms including Jefferies Group, Inc., which conceived and structured the investment, as well as Blackstone, GETCO LLC, Stephens, Stifel Financial Corp. and TD Ameritrade Holding Corporation.On the heels of last week's epic trading snafu, Knight Capital Group Inc. (NYSE:KCG) remains in the spotlight today. The market maker, struggling under the weight of heavy losses, announced it has struck a $400-million deal with a consortium of investors -- a group that's said to include the likes of Blackstone Group and Jefferies & Co. Ahead of the bell, KCG shares have plunged more than 30%. (CNBC)
As the company opened its books to potential saviors, people with knowledge of the matter said KKR & Co., TPG Capital and Silver Lake were among buyout firms that had an initial interest -- though one said chances of a private-equity deal are small. Knight shares jumped $1.47 to $4.05 today. They traded as high as $13.53 this year.
The market maker has until Aug. 6 to complete a transaction in which Goldman Sachs Group Inc. will take over trades that saddled Knight with a $440 million loss, a person familiar with the matter said. U.S. stock trades settle three sessions after they are made
“We are grateful for the support of these leading Wall Street firms that came together to invest in Knight,” said Tom Joyce, Chairman and Chief Executive Officer, Knight Capital Group. “The array of participants in this capital infusion underscores Knight’s critical role in the capital markets. With our financial position strengthened and liquidity restored, we will continue to provide clients with trading in a broad range of securities, high-quality execution and outstanding client service.”

risky play buy now sell at 4 a share ? thoughts >??

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