Reminder on NXCD from a few months back.........Internet Credit Card Issuer NextCard Predicted as
Takeover Candidate by First Union
By Ted Knutson, ZacksNEWS reporter. Fri Jul 2 12:16:22 1999
NextCard Inc (NXCD), the largest credit card issuer on the
Internet, was awarded an initial “buy” ranking by First Union
Capital Markets' Meredith Whitney based on her belief the
company will be bought out in the next 12 to 18 months.
Or possibly sooner.
If Whitney's 12-month target price of $60 proves correct, the
stock would nearly double from its current level. NextCard was at
$35 7/8 in mid-day trading Friday.
To the analyst, the logical candidate to take over the Internet Visa
issuer would be a credit card company that doesn't have the
technology to approve card applications over the Net and wants
to maintain market share in the revolving credit arena.
Whitney said few banks have that technology.
NextCard has about a 25 percent market share for credit cards
approved over the Internet.
Card approval is in seconds.
Whitney predicts 30 percent of all credit cards will be issued over
the Web by the early years of the next decade.
Who's applying for credit on-line?
Whitney said NextCard's demographics are lower than average
for credit card firms. But she expects average income and wealth
will rise, as on-line card applications become more widespread.
In some measure because of the lower income and wealth levels,
Whitney said NextCard rejects applicants at a higher rate than its
off line competitors.
The three investment firms which underwrote NextCards' initial
public offering came out with “buy” ratings or better at the end of
their federally-imposed “quiet period” on the stock three weeks
ago.
Stephen Franco of U.S. Bancorp Piper Jaffray has a “strong buy”
on NextCard with a 12-month target price of $50.
Jamie Kiggen at Donaldson Lufkin & Jenrette has a “buy” on the
stock with a 12-month target price of $70.
David Readerman of Thomas Weisel Partners has a “buy” on the
company.
NEXTCARD(R) INTERNET VISA(R) USES LIVE CHAT FOR
ONLINE SALES AND
PR Wire
July 6, 1999, 3:47 a.m. PT
Support
SAN FRANCISCO, July 6 /PRNewswire/ -- NextCard (Nasdaq: NXCD), creator of
The First True Internet Visa, today announced it offers live chat for online
customer sales and support. At the click of a button, customers can initiate
an interactive conversation with NextCard customer service representatives and
get immediate answers to all their credit application or account questions.
NextCard, using technology provided by LivePerson, is the first Internet
credit card firm to use real-time online chat for sales and customer service.
( nextcard.com )
"The customized nature of the NextCard requires rich customer
interactions," said Tim Coltrell, chief operating officer of NextCard. "With
live chat, we are now able to provide customers with an even more convenient
and effective user experience. This breakthrough," added Mr. Coltrell,
"represents yet another step in NextCard's technology strategy of 'taking
Internet innovations as they occur and transforming them into enhanced
customer functionality far more rapidly than our competitors.'"
Click to Chat!
At the touch of a button, customers can connect with a NextCard
representative online, without having to disconnect from their Internet
connection. The real-time service enables NextCard customers to ask questions
about new credit applications or existing accounts and receive answers
immediately. Live chat is completely secure, compatible with any Web browser
and requires no special software. NextCard representatives are available
online between 7:00 a.m. and 6:00 p.m. PST to ensure the highest levels of
support during this introductory period.
nextcard.com
"With the addition of live chat, NextCard customers never have to be a
prisoner of telephone calls again," said Robert LoCascio, president and CEO,
LivePerson. "We're excited that NextCard is taking advantage of our
easy-to-use solution to give customers instant answers to all their questions
about the NextCard Internet Visa."
NextCard, Inc.
NextCard, Inc., creator of the First True Internet Visa, is considered the
industry's leading issuer of consumer credit on the Internet. Since its
launch in December 1997, over 2 million people have applied for the NextCard
Internet Visa, making it one of the premier online credit cards. NextCard
continues to innovate with its Double Rewards program, GoShopping! tools,
original PictureCard design, one-click digital wallet and exceptional online
customer service. NextCard was recently named a "HOT 100" company for 1999 by
UPSIDE Magazine. |
