ANY stock will look good compared GE (crushed and only now coming back), MSFT (dead money until recently) and GM (bankrupt). What a pathetic bunch to be compared against. NITE's performance relative to the market has been dismal. Lots of negatives surrounding the stock and their new foray into mortgage biz is puzzling at best.
Generally agree with your analysis...NITE got caught in the dot-com runup and went to $75 or so and has obviously never recovered those levels, though I think they are making a lot more profit today than they were back then....solid company with lots of cash and earnings...stock will most likely be a lot higher a few years from now if they aren't bought out before then....
It trades this way because the company is not that good. Even its "great" earnings yesterday was marred by the fact that both profit and revenue did not meet analysts expectations. I'm surprised it even went up at all. I've seen this happen before with knight.
And now it wants to get involved in the mortgage business. What's that all about? I guess it's a way of saying that the market making industry is el sucko and will be that way in the future.
On top of all this, you guys should pay attention to what's going on in American politics today. If you've been listening to Obama, you'd think you were listening to Hugo Chavez. A real Marxist and tyrant. Yeah, he was right, he won't be mistaken for one of those guys whose pictures are on US currency. He's declared total war on the very people who provide the financing and enterprise that has fueled the greatest economy the world has ever seen. What's going on in Washington is a thousand times more deadly to the ultimate fate of the stock market...and Knight's business...than any 500 corporations' earnings.