NXCD in Wall St. Journal:
September 28, 1999
NextCard Up 16% On DLJ Note, Hoover's Mktg Pact
By Miatta V. David
NEW YORK -- Shares of NextCard Inc. (NXCD) rose as high as 28% Tuesday after Donaldson Lufkin & Jenrette Securities Corp.'s favorable research note on the company's outlook and recent pact with Hoover's Inc. (HOOV), a market watcher said.
NextCard's "September quarter is tracking well," said the DLJ research note, "with our estimates for revenue and quarter-ending assets being eminently attainable."
Stephen Lacey, managing editor IPO Reporter, attributed the stock move to the positive note.
NextCard shares rose as high as 26 1/2 and recently traded at 23 9/16, up 2 15/16, or 14.2%, on Nasdaq volume of 2.7 million. Average daily average is 368,200.
In the research note, DLJ analyst Jamie Kiggen also said he sees 10% upside in each of the revenue drivers for the company, including its credit-card balances and finance spread.
Kiggen estimates a third-quarter loss of 52 cents a share on revenue of $5.2 million for the San Francisco company, which went public in May. First Call/Thomson Financial's consensus estimate is for a 52-cent loss.
Kiggen also commended NextCard's electronic commerce marketing pact with business information provider Hoover's Inc. (HOOV), announced Monday.
As reported, NextCard, which issues consumer credit on the Internet, agreed to become the exclusive credit-card sponsor of Hoover's Online.
Under the agreement, NextCard will promote its credit cards to Hoover's Online visitors and offer special incentives to new cardholders who apply through the Web site.
Keggin, who reiterating his buy rating in his research note, said NextCard's marketing efforts "coupled with the acceleration of e-commerce feature on product side should drive upside surprises well into next year." |
