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One Hobbling Knight for Sale!

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November 26, 2012 – Comments (0) | RELATED TICKERS: BX , KCG

In article on Fool.com earlier today, I opine on the potential for Knight Capital (NYSE: KCG) to get bought out -- which is a very real potential given the latest news reports. For individual investors, the goodness/badness of a Knight sale (or partial sale) depends an awful lot on when you bought and what your view is on the intrinsic value of the company. On the latter point, it may be time to abandon those unrealistically high valuation views because a buyer at this point just isn't going to be paying a massive premium.

A sale would hardly be a surprising outcome, as it would 1) lock in a pretty impressive return on investment for the bailout consortium and 2) get them out of an investment that they may not feel comfortable holding for a longer timeframe (with, perhaps the exception of Blackstone (NYSE: BX) or Getco). 

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