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Business Week: September 20, 1999
BusinessWeek Investor -- Inside Wall Street
Genesis: A Strong Start on the Web
What a difference a year made for J.W. Genesis Financial (JWG), a full-service brokerage. Its stock has streaked from 5 to 16. Also, JWG acquired Genesis Merchant Group Securities last year for $15.8 million--and this year its institutional sales and research unit for $4 million and its clearing operations for $59 million.
Cash-rich, with about $60 million, JWG is diversifying into the Internet: It has formed mvp.com, a Web portal designed to provide lifestyle info: sports, health and fitness, and financial services. JWG has hired former National Football League star John Elway to spearhead mvp.com as its spokesman. The former Denver Broncos quarterback owns 50% of mvp.com.
With the Internet unit likely to go public after it gains momentum (it will be launched at Super Bowl XXXIV in January, 2000), ``this is the time to buy into J.W. Genesis,' says Charles Payne, an analyst at Wall Street Strategies, a New York research firm. He sees the stock ``doubling, at a minimum, in 12 months,' helped by the projected impact of mvp.com on JWG's sales and earnings. He figures mvp.com is potentially worth $100 million. But even without mvp.com, he figures JWG is worth 20 a share. Joel Marks, vice-chairman of JWG, says the company is in talks with America Online. mvp.com aims to become the leading lifestyle portal, he says.
BY GENE G. MARCIAL
Copyright 1999 The McGraw-Hill Companies, Inc. All rights reserved. Any use is subject to (1) terms and conditions of this service and (2) rules stated under ``Read This First' in the ``About Business Week' area.
09/09/99 19:50 |
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