| |
Southwest Securities Up 12%; Knight/Trimark Link Cited
NEW YORK (Dow Jones)--Shares of Southwest Securities Group Inc. (SWS) rose nearly
13% Monday due to continuing investor sentiment about its stake in market maker
Knight/Trimark Group Inc. (NITE), an analyst said.
Southwest was up 6 1/8, or 11.6%, at 59 1/16 on volume of 1.2 million shares. Average
daily volume is 297,100 shares.
The Dallas-based investment bank, which owns Mydiscountbroker.com, issued a
statement Monday saying that its management knew of no reason for the stock's high
volume or volatility.
But the firm has been benefiting from its association with Knight/Trimark Group Inc., said
Financial Service Analytics analyst Michael Flanagan. Southwest owns 1.7 million
shares of Knight/Trimark, which recently reported higher-than-expected earnings.
Knight/Trimark, a Jersey City, N.J., market maker that handles orders for some online
brokers, was slightly higher Monday, at 153 3/8, up 3/16, or 0.1%, on volume of 4.1
million shares. Average daily volume is 2.2 million shares.
Even though Knight/Trimark itself wasn't significantly higher Monday, Flanagan said the
stock's powerful rise - it was trading at 4 1/2 just six months ago - over the long run has
had a beneficial effect on Southwest. Of Southwest's current trading price, Flanagan said
about $24.63 is directly attributable to the Knight/Trimark stake.
Both Southwest Securities and Knight/Trimark have been trading in volatile ranges since
April 21, when the market maker beat analysts' estimates for its first-quarter earnings by
28 cents a share. |
|
