Strange to me that few have picked up on the strategy of this Internet company. The Freeserve site (UK) that MFSI will provide financial info for is also allowing MFSI to provision and provide on-line trading! Can't anyone multiply the $$ that will accrue to MFSI when this is up and running? MFSI's announced deal with TSCN's Trading Technologies software allows the user to buy and sell shares from virtually any site, i.e. one doesn't have to type in the URL for your on-line broker, the window pops up as a frame. At $1/trade to MFSI (I don't know what their take will actually be, I'm just putting out a number to start off with), and if 1.5 million subscribers at Freeserve, yields maybe 50,000 on-line traders at first? One trade a week/trader produces $200K/mo to start or $2.4 million/yr to the bottom line. Now that doesn't sound like much for a company with 50million shares,however, let's say I'm wrong about the number of trades/week, the number of traders, and the revenue/trade. You can do the numbers.
I can only guess that owners of MFSI haven't figured out what they are about to do. (despite the public announcements on Bloomberg, et al.) This trading model can be taken elsewhere around Europe, mind you and then back to the U.S. The issue should be (for the curious), why are they getting so close to TSCN? (owned 11% by Paul Allen) and what does TSCN offer them? I see Internet trading written all over this relationship. When you hook everyone up to the various ECN systems that are evolving, Internet trading will not seem so fly by night. It will become the way everyone throughout the world trades.
I suspect we will know almost all of this by the time they are up and running at Freeserve. Promised date is 4/22 but who knows whether it will be exactly that date. good luck investing. |
