NASDAQ:NITE
$15.07
(2/9 1:28PM)
-0.1%
| Open | $15.25 |
Mkt Cap | $1.4 Billion |
| High | $15.25 |
52Wk High | $23.11 |
| Low | $14.95 |
52Wk Low | $13.39 |
| Volume | 749,855 |
Avg Vol 10D | 1.4 Million |
Ockham's Rating/Recommendation Summary
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NITE Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, NITE the high and low end of the Price to Sales per share ratios are 2.44x and 1.19x respectively.
Notice that NITE's current Price to Sales per share ratio is 1.22x, which is well below its normal historic Price to Sales levels. At a price of $15.28, NITE is 33% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
NITE Cash Earnings
Looking at NITE specifically in their Cash Earnings capabilities, Ockham views NITE as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from NITE. For example, NITE's Cash Earnings ratio per share has fluctuated between 9.13 and 19.56 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where NITE is with respect to prior business periods.
So with NITE's current price (latest close of $15.28) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, NITE is 36% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with NITE.
NITE Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for NITE to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. NITE may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As NITE more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
NITE's Back in the News After More than a Month on The Call
It's been at least a month since we noticed any major news coverage of NITE, so the story in The Call may get the ball rolling.
At present, Ockham has a valuation stance of Undervalued on NITE, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Knight Capital Group Incorporated has actually sunk a bit in comparison to the others.
“… We are indeed, KNIGHT CAPITAL, this is one of the largest trading desks on wall street. We're in jersey city, but we're very much a part of wall street. …”
NITE's Back in the News After More than a Month on Squawk On The Street
After a month of relative quiet from NITE, they have appeared back in the news.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; NITE has received less coverage from the financial media in business television and blogs. Based on our methodology, Knight Capital Group Incorporated should hold some appeal to value investors as we view it as Undervalued.
“… I'm on the floor of KNIGHT CAPITAL, biggest and nicest trading operations in jersey city. Very much on wall street. Here's the man in charge, tom guy I knew many years at ... …”
The Chief Executive of NITE Was Discussed on Mad Money
Staying in touch with the latest management news is one way we are keeping our clients informed. Notice, RazorWire has a news capture related to NITE's CEO.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Knight Capital Group Incorporated has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on NITE, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. It is also notable that we have recently upgraded this stock on Saturday, November 07, 2009 because NITE is more attractive in many of the valuation metrics we evaluate. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards NITE and think that it will generally perform in-line with the S&P 500.
“… KNIGHT CAPITAL group. I bought at around 16, and it climbed slowly and -- > > you know what? I want t. J. , I want tommy joyce back on because boy, that stock has just been pan... …”
Check Out Imus In The Morning's News on NITE
Here with sports sponsored by net jets 1-877-net-jets, go to net jets.Com. Behave yourself mickey. >> all right. Warner: nba last NITE in cleveland where the cavs finished 39 and 2 at home all last year already lost their second game at home last night. Warner: that's right, they lost two at home losing to the bulls 86-85. Lebron drove to the basket three seconds left, he thought he may have been fouled.
“… arner: that's right, they lost two at home losing to the bulls 86-85. Lebron drove to the basket three seconds left, he thought he may have been fouled. …”
Knight Capital Group Incorporated (NITE) Discussed on CNBC's Street Signs
Knight Capital Group Incorporated is in the news. Find out how this impacts NITE trading on Ockham Research.
Guest, one of the people who have done the best during this time. >> all the ceos of all these exchange are here and these trading platforms. One of the big guys, he runs KNIGHT CAPITAL. If you've ever put in an order to buy or sell a stock, I guarantee you it is probably knight that went through and did your order for you. 3.5 billion shares they trade every single day. Dow 10,000. I know you aren't leaping up and down but give us a comment quickly about the markets. You see the orders flow every day.
“… ou it is probably knight that went through and did your order for you. 3.5 billion shares they trade every single day. Dow 10,000. I know you aren't leaping up and down but give us a comment quickly about the markets. You see the orders flow every day. …”
Knight Capital Group Incorporated (NITE) Discussed on CNBC's Mad Money
Knight Capital Group Incorporated is in the news. Find out how this impacts NITE trading on Ockham Research.
And the reason is i've lost too so let's just say 90% of the time I do not break price. And that's one of the reasons why i've been a successful and the way to play it is NITE capital, n-i-t-e. After the break i'll try to make you even more money. >> announcer: coming up -- president obama says we need more reform on wall street. And later, try to keep up with cramer ease takes your calls rapid-fire in an all new "lightning round." plus, how do your stocks stack up in a mystifying market? Cramer makes sure your portfolio
“… uncer: coming up -- president obama says we need more reform on wall street. And later, try to keep up with cramer ease takes your calls rapid-fire in an all new "lightning round." plus, how do your stocks stack up in a mystifying market? Cramer makes sure your portfolio …”
Knight Capital Group Incorporated (NITE) Discussed on CNBC's Mad Money
Knight Capital Group Incorporated is in the news. Find out how this impacts NITE trading on Ockham Research.
You know it and I know it. Ththe plplayining eld d despspite e thee bogus accusations you might hear about dark pools of capital has never been as level for all you home gamers. I've never seen it like this. And KNIGHT CAPITAL, NITE symbol, is our stock that is a knight in shining armor and the way to play a trend. I think it's a buy buy buy. Rob in south carolina. >> caller: hey, jim. A big south carolina gamecock boo-yah to you. >> hey, listen, i'll be a -- you know, if I had a football pool and were allowed to bet, I think I would have to put some money this weekend on you. >> caller: my question is about charles schwab. With as many people supposedly sitting on the sidelines and waiting to get back in, with retail trading, could we expect a stock like schwab to be good moving forward? >> I think so. Plus don't forget.
“… hat is a knight in shining armor and the way to play a trend. I think it's a buy buy buy. Rob in south carolina. >> caller: hey, jim. A big south carolina gamecock boo-yah to you. >> hey, listen, i'll be a -- you know, if I had a football pool and were allowed to bet, I think I would have to put some money this weekend on you. >> caller: my question is about charles schwab. With as many people supposedly sitting on the sidelines and waiting to get back in, with retail trading, could we expect a stock like schwab to be good moving forward? >> I think so. Plus don't forget. …”
Knight Capital Group Incorporated (NITE) Discussed on CNBC's Mad Money
Knight Capital Group Incorporated is in the news. Find out how this impacts NITE trading on Ockham Research.
I mean, this is a company that's voraciously devouring market the new york stock exchange and nasdaq will not like what I I welcome them on the show, but I have to point out the share gains here. And this is all after the call at the end of july for NITE when the company told us daily trades were um 123% in the first half of 2009 from the first half of 2008. That's amazing. Daily share volume up 103%. Daily dollar volume increased by as tj put it, that's what we all call him, the rise in dollar volume trades is absolutely remarkable given the concentrated trading activity in low-priced stocks, which we wingtsed in the second quarter. On that call t.J. Said the price "silly." now, the stock has moved up $3.64, or 20% from when he said
“… when the company told us daily trades were um 123% in the first half of 2009 from the first half of 2008. That's amazing. Daily share volume up 103%. Daily dollar volume increased by as tj put it, that's what we all call him, the rise in dollar volume trades is absolutely remarkable given the concentrated trading activity in low-priced stocks, which we wingtsed in the second quarter. On that call t.J. Said the price "silly." now, the stock has moved up $3.64, or 20% from when he said …”
Knight Capital Group Incorporated (NITE) Discussed on CNBC's Mad Money
Knight Capital Group Incorporated is in the news. Find out how this impacts NITE trading on Ockham Research.
Honest, the nasdaq is honest, but the more the merrier, the more competition we have the better your prices. Pools is unfortunate. No one wants to dive into a dark it's like diving into love canal. They should be called olympian pools because there's room for that's why I like NITE capital. The leading source of off-exchange liquidity in u.S. Equities. It has greater share than any remember, you don't turn to goldman sachs for retail you don't necessarily go to even morgan stanley, you may not even be working with -- smith barney maybe, but institutionally, you're not trading with them. Bear stearns is gone, so is it leaves NITE capital in enviable position when it comes to the new york stock exchange, which seems to continue to lose market share by the month. Again, not knocking the stock just encouraging as much competition, which includes now, NITE group, NITE capital group typically handles over 5 million trades a day, mostly for retail clients. As market makers, NITE internalizes the flow. Again, wall street gibberish that I will bust here. It means they take the other side of the trade for the best again, this is a good thing. It gives retail investors great prices. Their average daily volume was 22 billion in august, up 8% from july. Average daily share price was $15.6 billion. That's up a phenomenal 53% over july, driven by increased small stock trading. The small-time investors trading citi and fannie and freddie and aig before the split they're
“… for that's why I like NITE capital. The leading source of off-exchange liquidity in u.S. Equities. It has greater share than any remember, you don't turn to goldman sachs for retail you don't necessarily go to even morgan stanley, you may not even be working with -- smith barney maybe, but institutionally, you're not trading with them. Bear stearns is gone, so is it leaves NITE capital in enviable position when it comes to the new york stock exchange, which seems to continue to lose market share by the month. Again, not knocking the stock just encouraging as much competition, which includes now, NITE group, NITE capital group typically handles over 5 million trades a day, mostly for retail clients. As market makers, NITE internalizes the flow. Again, wall street gibberish that I will bust here. It means they take the other side of the trade for the best again, this is a good thing. It gives retail investors great prices. Their average daily volume was 22 billion in august, up 8% from july. Average daily share price was $15.6 billion. That's up a phenomenal 53% over july, driven by increased small stock trading. The small-time investors trading citi and fannie and freddie and aig before the split they're …”
Knight Capital Group Incorporated (NITE) Discussed on CNBC's Mad Money
Knight Capital Group Incorporated is in the news. Find out how this impacts NITE trading on Ockham Research.
Part of the reason for that is because of the market's rise. But why are they coming back to day trading? I think it's about more than just commissions being low. According to tommy joyce, the fantastic ceo of NITE capital and a man i've known for 35 years, when his hair was brown and I had hair, there are three other things going on here. First is speed. The average speed at which a trade is executed for you in a typical liquid stock has dropped to 30 milliseconds in the last five years. So it's much easier for investors to see the price they get on that streen instantly. Eliminates any fear of slippage. Second, five years ago about 77% of all orders were at or better. That's a technical phrase, meaning the investor got a better price. Got a price at or better than
“… s, when his hair was brown and I had hair, there are three other things going on here. First is speed. The average speed at which a trade is executed for you in a typical liquid stock has dropped to 30 milliseconds in the last five years. So it's much easier for investors to see the price they get on that streen instantly. Eliminates any fear of slippage. Second, five years ago about 77% of all orders were at or better. That's a technical phrase, meaning the investor got a better price. Got a price at or better than …”