here you go:
CKFR: CHECKFREE PRESENTS AT FIRST UNION CAPITAL MARKETS NANTUCKET CONFERENCE
07:32am EDT 9-Jul-99 First Union Capital Markets (Charles Wittmann 804-782-33
### ### FIRST UNION CAPITAL MARKETS ### ###
CKFR: CHECKFREE PRESENTS AT FIRST UNION CAPITAL MARKETS NANTUCKET
CONFERENCE
CheckFree Corporation (CKFR-OTC) STOCK RATING: 2
PRICE TARGET: $41
PRICE: $29 DATE: July 9, 1999
52-WEEK RANGE: $69-$6 ANALYST: Charles Wittmann, CFA
DIVIDEND/YIELD: none/nil PHONE: (804) 782-3316
ASSOCIATE: Matthew Cullen
PHONE: (804) 344-6205
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EPS ESTIMATES (FY 6/30) 1998A 1999A 2000E
Q1 - September ($0.06) ($0.05)A -- AVERAGE
Q2 - December (0.02) 0.00A -- VOLUME: 921,900
Q3 - March 0.00 0.04A --
Q4 - June 0.03 0.08 -- INSIDERS
---- ---- ---- OWN: 40%
Full-Year EPS ($0.05) $0.07 UR
INSTITUTIONS
OWN: 58%
P/E RATIOS NMF NMF NA
SHARES OUTSTANDING: 55.8 million
MARKET CAPITALIZATION: $1.6 billion
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HIGHLIGHTS FROM CONFERENCE PRESENTATION:
CheckFree presented to institutional investors on July 8, 1999, at the
First Union Capital Markets Nantucket Conference. Some of the highlights
from this well-attended presentation follow.
-- CheckFree detailed its focus on signing Internet portal companies to its
bill payment and bill presentment service. Portal companies are
interested in the product because CheckFree's product increases the
"stickiness" of the site. We look for CheckFree to announce portal
agreements with companies such as Yahoo!, America Online, and other major
portal either by themselves or through their partnership with Intuit.
-- Management appears comfortable with our subscriber estimate of 2.9
million for Q4'99.
-- We look for Charles Schwab to aggressively roll out its Internet product
that will feature CheckFree's bill payment and presentment product over
the next six months. This roll-out should provide strong subscriber growth
during this timeframe.
-- E-Bill 3.0 product is compelling with its dynamic summary functionality.
Investment Opinion:
While we still believe that CheckFree is the dominant independent provider
of electronic bill presentment and bill payment services, we continue to
take a less aggressive stance on the shares of CheckFree. The Exchange
poses a potential competitor to CheckFree on the bill presentment side, and
the company has discussed a major Internet investment strategy that should
delay future profitability. CheckFree has a strong market position and
the ability to increase the market with agreements with portals. Such
announcements may provide positive catalysts from the stock. Currently, we
maintain our Outperform rating on the shares of CheckFree.
Additional information is available upon request.
First Union Capital Markets maintains a net trading market in the
shares of CKFR.
QR: 2; S&P Ranking: NR
First Union Corporation has entered into a definitive agreement to acquire
EVEREN Capital Corporation. The completion of such acquisition is subject
to, among other things, shareholder and regulatory approval, and is
scheduled for September 30, 1999. At some time on or after the merger
date, EVEREN Securities, a subsidiary of EVEREN Capital Corporation and a
member NASD, NYSE, and SIPC, will be merged into First Union Capital
Markets Corp., a subsidiary of First Union Corporation and Member NASD,
NYSE, and SIPC.
First Call Corporation - all rights reserved. 617/345-2500
END OF NOTE |
