Interesting news out on NITE from Putnam/Lovell conference. NITE bumped up 2 pts immediately, but has settled back down. As a co. NITE looks great, but the market still looks funky to me, and I'm keeping my powder dry for the moment. BRCM is also looking good. It's up 20 pts from last week and looks like it is in a great spot for broadband.
"..Also at the conference, the chief operations officer of Knight/Trimark Group Inc. said
he expects Merrill Lynch & Co. will use Knight to execute online trades when it expands
its Internet brokerage efforts. ''They have to give instant execution,'' said Walter Raquet.
''They can't charge $29.95 and give inferior execution. It's a low-margin business and
we're good at it.''
Knight, the biggest Nasdaq market maker, said it expects increased margins when online
options trading begins early next year. It hopes all 850 of its broker/dealer customers will
begin using its Web browser-based trading product by September.
Knight executed a record 520,000 April 19, equal to almost one-quarter of all U.S.
stock trades that day, Raquet said. Its computers can now handle 1.2 million trades
daily, a capacity figure it will increase to 2 million to 5 million trades per day, he said.
E*Trade shares fell 1/16 to 40 11/16 in afternoon trading. Knight/Trimark rose 7/8 to 59
7/8 and Ameritrade fell 3/8 to 84 7/8..."
You still shorting? Boy, I think there are better opportunities out there than NITE. It could really run if the rate fears subside. It's downside has been tested pretty hard already. What do you think?
Jim
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