InvestorsHub Logo
icon url

Summitgains

01/25/15 12:43 PM

#4708 RE: Gnar_Profits #4705

There is no comparison to the knight situation here. Not even close.
icon url

Gnar_Profits

01/25/15 12:52 PM

#4712 RE: Gnar_Profits #4705

KCG and FXCM

Some comparisons I see. The positive though, not the negative.

1. After KCG acquired their horrible loan they bounced back 500%. Remember they dipped to 2-3$ a share, now they trade at $12.00

2. LUK does not mess around. Just as KCG was bought out we can expect a buyout might be likely outcome. Can anyone say $5.25 a share?

3. If we follow the KCG chart and compare it to FXCM we can expect FXCM to be back around $10.00 a share. Not quite the $17 it was before. But who will complain about $10?

4. KCG was doomed due to an embarrassing mistake that cost them over $400 million. Much higher numbers then FXCM. But FXCM is much much bigger with greater revenues.

5. The KCG deal gave Jefferies and the other investors the right to buy about 73% of Knight Capital’s common stock at $1.50 a share. Four months later, the firm reached a deal to sell itself to Getco LLC, a high-speed trading firm that participated in the rescue deal, for $3.75 a share. At the time of the Getco deal, Jefferies was Knight’s biggest shareholder. I predict there might be a similar deal. I predict a $4.50 - 5.25$ share sell off if it does happen in a few months. I'll take that all day.

So whenever someone compares this to KCG I'm like "RIGHT ON, SHOW ME THE MONEY!"