I also agree with you that getting evwap up and running has been center stage. The Key components now seem to be in place, and I'd think the deployment of the other members of evwap trading family will benefit from this initial leg work. But now that there are real signs that the company is maturing, it now seems appropriate to start thinking about market valuation possibilities and back of the napkin revenue estimates.
I think a one year timeframe is short sighted but that is where my pondering begins. April 1, 2000 is the start of company's fiscal year. How does today's price compare in light of what is on the table in the period 4/1/00 - 3/21.
I copied the profile below. With the NYSE going Electronic this year, the spot light is sure to be on this sector and I am sure I am very biased, but that profile to me says right ideas, right time, right place:)
The Ashton Technology Group, Inc. is engaged in the development and
commercialization of on-line transaction systems for professional participants in the
financial markets. The Company?s management believes that its understanding of
financial markets together with its technological expertise provides competitive
advantages in the design, development and deployment of electronic transaction
systems.
Ashton's transaction systems incorporate the Company?s core areas of technological
expertise which include:
Internet, Intranet and Extranet technologies and systems;
Electronic authentication, encryption and trusted systems providing high grade
data and information security;
On-line transaction systems for use through traditional channels and through the
Internet;
Advanced computing technologies, including neural networks and other forms of
artificial intelligence, which provide analytical tools for prediction and decision
support.
Ashton Technology directly focuses on the development and application of data and
information security technologies and initiatives for the electronic (including the Internet)
distribution of the Company?s on-line transaction systems. The company's proprietary
data and information security architecture has been designed to provide the elements of
confidentiality, integrity, non-repudiation, access control and auditability that are
necessary to allow the use of both "open" and proprietary networks in the conduct of
Internet commerce.
Ashton has developed a proprietary network which incorporates data and information
security technologies and supports electronic distribution of the Company?s on-line
transaction systems using Internet protocols and the global network services of MCI
WorldCom, Inc., providing access to over 100 countries. One of Ashton's initiatives in
the distribution of its on-line transaction systems is development of a wholesale
transactional web site. It is envisaged that this web site will be made available to
financial intermediaries with software allowing these financial intermediaries to not only
access, but make Ashton's transactional web site available to their clients. The
Company expects that this web site will provide widespread access to its transaction
systems.
Through the deployment of this transactional web site, Ashton will build a new type of
exchange community - a "virtual market community." With Ashton as its backbone, this
virtual market community will host revenue generating transaction activity for Ashton
and its members through pooling "best of breed" financial products with the collective
distribution and origination capabilities of the member firms. It is expected that this
transactional web site will be multilingual and in active use for 18 hours per day
providing instantaneous information, trade execution and payment.
Ashton Technology, Inc. was founded in 1994 to exploit commercial opportunities in
electronic commerce through applying advanced telecommunication technologies
together with advanced computing technologies.
UTTC? deploys and operates systems to enable secure on-line transactions through
various public and private communications networks. On April 8, 1997, UTTC?
completed the Universal Trading System ("UTS?") and its first product module, the
eVWAP? (electronic volume weighted average price) trading system.
UTS? provides trade executions through secure electronic pathways within a neutral
electronic environment, guaranteeing anonymity for its users. Especially designed for
institutional investors and financial intermediaries, UTS? uses computer and
telecommunications technologies that enable participants to enter and execute orders
and receive system information either on-line or through the Internet. UTS? is
available to exchanges, broker-dealers, NASDAQ dealers and financial intermediaries.
The first UTS? product module, the eVWAP? trading system, provides investors
with an electronic pathway for the secure execution of block trades and guarantees user
anonymity. Trades are executed at the unique eVWAP?, calculated by the average
price for a specific stock weighted by the volume of shares of such stock traded
"regular way" during the day on all U.S. securities exchanges as reported to the
Consolidated Tape. Management believes that eVWAP? trade execution is in
increasing demand by money managers and has been recommended by some industry
experts as a means for providing best trade execution at the lowest possible cost. It is
the first system that provides the true volume weighted price calculation in an execution
system sponsored by a national stock exchange.
The full family of eVWAP? products is expected to include: Opening hour
eVWAP?, Closing hour eVWAP?, Intraday eVWAP?, eVWAP? Indices, and
"Market on Close" execution. UTS? product modules expected to follow eVWAP?
are: the Electronic Auction System (eAS?), an Electronic Public Limit Order Book
(ePLOB?), and an Electronic Options Trading System (eOX?).
Management believes that trades related to institutional securities transactions account
for approximately half of all securities traded in the U.S. domestic market and that
computerized pricing and execution systems have become an increasingly important
form of trading for institutional investors. The Company anticipates that the global trend
toward screen based trading will provide investors with greater liquidity and significant
cost reductions, resulting in a high demand for such UTS? products.
eVWAP? was approved by the Securities and Exchange Commission on March 24,
1999 as a facility of the Philadelphia Stock Exchange (PHLX). UTTC? is a party to a
five-year contract with the PHLX which defines a business relationship that includes
employing eVWAP? on the PHLX floor as a trading product.
Other avenues for launching the eVWAP? system and other products include
UTTC??s recently formed broker-dealer subsidiary which could offer UTTC??s
products directly.
G¢mez was formed in May of 1997 by Ashton together with Julio Gomez. G¢mez is
considered to be one of the leading experts concerning on-line financial services. The
firm provides strategic counsel for banks, mutual funds, brokerage firms and other
financial institutions seeking to establish customer relationships through the Internet. The
consulting services offered by G¢mez include: strategic planning; site evaluation, design,
and implementation; and marketing and retail account acquisition. The team of
professionals at G¢mez provides Ashton with insight and advice which has been and
will continue to be invaluable as Ashton develops its full family of internet-based
products for the financial markets.
The ability to disseminate information over the Internet has changed the way investors
interact. The continued growth of on-line brokers will be increasingly dependent upon
their ability to offer client access to value-added services including real-time information
and content. G¢mez?s Internet Scorecards define the elements of quality for providers
of services to consumers of the internet and help consumers choose the internet financial
service provider that best suits their needs. The key elements of the Internet Scorecards
are grouped into categories that include ease of use, customer confidence, on-site
resources, relationship services and overall cost.
eMC? was formed as a wholly owned subsidiary of Ashton and will offer established
brokerage firms and other financial intermediaries access to Ashton's technology and
state-of-the-art distribution and communications network. Through eMC?, these
brokerage firms and other financial intermediaries can provide an on-line brokerage
product to their clients. Ashton has granted eMC? a perpetual and exclusive license to
deploy and operate the technology underlying the eMC? network. eMC? has been
designed to provided interactive market access for financial intermediaries and their
clients and is further expected to become a global electronic distribution channel for a
broad range of financial products and services. eMC? is in the initial stages of
development and is expected to be available in late 2000.
ATG International? was formed to capitalize on international opportunities created by
the dynamic environment of an increasing global economy. ATG International? and
Ashton will customize transaction system technology for deployment on international
stock exchanges. Current international initiatives are focused in Hong Kong/China,
Canada, and Europe. Further, ATG International? will assist in globalization of
eMC??s distribution network.
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