Seeking Alpha
  • FocalPoint Analytics
    Looking at the price on Knight Capital (KCG) starting on Wednesday, you will see a sharp drop in the stock from around $10.25 to $7.00.
    8/5/12
    Reply (15)
    • FocalPoint Analytics: Yet the "Wild Algo" issue was not detected/ reported until Thursday? So why all the selling on Wednesday??
      8/5/12
    • FocalPoint Analytics: Something is not right here ... Is Knight Capital's "Wild Algo" a cover story?
      8/5/12
    • Bildar: The algo problem happened Wednesday morning.
      8/5/12
    • Mercy Jimenez: Would not surprise me FPA; just heard on Bloomberg they have now secured $400+ million in convertible bonds; no word yet on who are buyers
      8/5/12
    • Canary Cash: It's not enough.
      8/5/12
    • Canary Cash: The fact that it's convertible speaks to the level of BS here as well IMO, it's make the kids feel safe, convert, and goodnight and goodluck
      8/5/12
    • FocalPoint Analytics: Yes, but the news on the algo did not break until later that day... the selling started at the open.
      8/5/12
    • stocktrend: They secured the money from 4 firm @$1.50 convertible bonds
      8/5/12
    • stocktrend: Tdameritrade one of the firms
      8/5/12
    • Canary Cash: hilarious, so they can begin converting immediately or is there a date?
      8/5/12
    • Canary Cash: FPA, it may have been obvious to other MMs who it was going nutz, it started right from the bell
      8/5/12
    • FocalPoint Analytics: That's a possibility Canary... the news could have spread like wildfire inside the business and only hit the financial media later.
      8/5/12
    • 1980XLS-2.0: FP, where on earth did you get those KCG share price assumptions? I bought ah thurs for $2.15, dumped for $3.50 on Fri.
      8/6/12
    • FocalPoint Analytics: Hi - Closed Tuesday at 10.16, Wednesday 6.86, Thursday 2.58, Friday 4.05. Convertible is at 1.50. Sell off started on open Wednesday.
      8/6/12
    • DRich: Gee, you make it sound like there might be some insider info/trading and that might be a bad thing.
      8/6/12