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Technology Stocks : NextCard, Inc. (NXCD)
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To: DD™ who wrote ()6/9/1999 7:09:00 PM
From: Philip Tung  Read Replies (1) of 192
 
The "first true Internet Visa"

Shares of NextCard (NXCD: news, msgs) shot up
7 3/4, or 21 percent, to 44 1/4 on volume of 3.2
million shares after its lead investment banker and
one of its co-managers started coverage of the
online credit card issuer with nothing less than rave
reviews. The bankers, who helped NextCard raise
$120 million with an IPO that debuted on May 14,
now helped to add $330 million in stock market
value on top of the company's current $1.6 billion
market cap.

Lead banker Donaldson, Lufkin & Jenrette initiated
coverage with a "buy" rating and a $70 a share
price target. U.S. Bancorp Piper Jaffray, which was a co-manager on the
deal, started coverage on the stock with a "strong buy" rating.

DLJ called the 2-1/2 year-old company the "premier online consumer
credit issuer." NextCard, which calls itself the "first true Internet Visa,"
has 23,000 customers who are considered prime or "heavy-spending
credit-worthy." NextCard makes money by earning an interest spread or
fee based on average balances. Currently, the company charges some 7
percent and is expected to generate $11.4 million in revenue this year.
Sales are projected to jump more than 650 percent to $75.9 million in
2000.

DLJ estimates that $20 billion or 25 percent of the $75 billion credit card
origination market will migrate online in the next "several years."

per cbs marketwatch cbs.marketwatch.com

go NXCD go!
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