Knight Capital Group (NITE): Is there a fight still left in this battle-weary stock?

The year 2007 has been challenging for Knight Capital Group Inc. (NASDAQ: NITE), a financial services company that dropped below $12 after trading near $22 in January. A recent earnings report for the third quarter probably won't do much for the stock price either, as it showed net income down 47% from the third quarter of 2006.

But, as a recent Goldman Sachs report argued, it's starting to look like the battering has gone too far, and the stock may well be due for a turnaround in 2008.

The Goldman report looked to a stock repurchasing program, as well as the sale of 50% of the DirectEdge division. Other analysts have pointed out that the losses in the third quarter were due to the company's expectation that it will have to repay fees at its Deepwater hedge-fund division, and that the fund has actually been meeting and even exceeding expectations so far this year, which suggests things should look better soon. Meanwhile commissions and fees have been rising nicely.

A stock like this is only good for investors who can stomach a bit of risk and have the time to be patient. If you're one of these investors, you may want to buy soon and be prepared to wait at least 12 months to see the results.

Type of Stock: A large trading company coming off a rough year.

Price Target: Goldman expects this to hit $18 within the next 12 months. That would be a 50% gain! I bet it could happen, but I suspect it may take a longer time horizon to reach $18.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing.