Sell Side Analysts Score a Big Fat F on Knight Capital

We all know what went wrong with Knight Capital Group Inc. (NYSE:KCG) last week. The big bug on the new trading platform inadvertently purchased stocks of many American corporations without any human input, resulting in the loss of $440 million within 45 minutes.  The firm had to arrange emergency funding to keep its doors open; otherwise Knight Capital Group Inc. (NYSE:KCG) would have gone bankrupt. The market maker's stock prices plunged over 75 percent within a day!

The irony is that almost all the sell side analysts had strong buy, buy and hold ratings for the Knight Capital stock. No, I am not saying that the analysts should...