**Info. on CarFinance.com Complements of DLJ...FYI...
<<CarFinance.com is the first-mover in the online auto loan market, with approximately 30% of the $730 million online auto market. For FY '98, CarFinance generated $160.7 million in auto loans with the average size loan of $18,000. In Q1'99 the company had $48.6 million in loans with $17,500 as the average size of the loan, and in its most recent quarter (Q2'99), CarFinance generated $62.1 million in car loans, with the average loan size of $17,000. CarFinance.com is a subsidiary of Bank of America, the largest bank in the U.S., with over $614 billion in assets as of March 31.
This transaction makes sense to us as it expands E-Loan's product offering, moving towards its goal of becoming the "one-stop" shop for all consumer debt needs. E-Loan will be able to leverage the additional auto loan products and services to its rapidly growing customer base. In addition, E-Loan will benefit from a strategic alliance with Bank of America, in which the two companies will collaborate on new e-product offerings, and BAC's President, Kenneth Lewis, is expected to become a member of E-Loan's board.
We reiterate our Buy rating. E-Loan has been executing very well in a large market and we believe will continue to execute well as their opportunities expand. E-Loan should be an important holding in any online financial services portfolio.
EELN: BUY RATING // PRICE TARGET $70>>
--Complements of a DLJ Report dated 8/24/99
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IMO, it's dangerous to bet against E-Loan right now. The BIG money and the SMART money understands the potential that this company has. The volume on this stock has been incredible for the last few days. I'm LONG on EELN for the LONG RUN.
Best Regards,
Scott |
