Here's the problems with the fundamentals: 1. Margins declining. NITE trades huge volumes of low priced stocks and the spreads have dramatically narrowed. 2. New biz initiatives, by Joyce's own admission, will not kick in any earnings for 2-3 years. 3. Potential for a transaction tax imposed by Congress on all trades over $100k. 4. Potential for much more regulation of financial markets including new Glass-Steagall Act. 5. Dark pools and flash trading to be regulated. NITE is a big player. 6. Liklihood for a takeover (the stock IS cheap) diminished as most potential acquirers will not play in this regulatory environment.
You are correct, the stock is cheap with lots of cash and little debt, but until the big overhanging questions are resolved, this stock is unlikely to make a big move. Only a small snap-back.
You could probably make that regulatory argument with just about anybody in the financial, health care, energy, etc... industry then ... avoiding the situation entirely is risky too. Remember, the Dems are in charge and they want more gov't involved in just about everything. ;)