Current Weekly Stock Pick:
wallstreetcorner.com
Date Posted: 10/20/2001 12:00:00 AM.0
SE Global Equities Corp. (OTC BB/SEGB)
SE Global Equities Corp. (OTC BB/SEGB)
I'm just beginning to investigate SEGB -- it appears to be a situation you can
look at from two aspects:
First, as an investment. Second, as a service you may well want to take
advantage of.
With offices in Vancouver, Montreal, & Hong Kong, SEGB is a global provider
of financial & direct-access trading information & services. Through its
subsidiary companies, it allows you to make both online investments &
"real-time/direct-access" trades in U.S. & international securities markets. It
has alliances with over 25 international brokerage firms on five continents.
With its software you have "direct access" trading capability. That means you
can make U.S. equities trades instantaneously - at a lower cost than
traditional methods. SEGB also provides important links to essential
information & resources -- I suggest you look at its main web site:
www.seglobal.com -- I checked it out yesterday & was quite impressed -- you
can get a good idea of what kind of information is available by taking the
"Tour" offered.
Management recognized several years ago that, with cross-border investing in
equities doubling every three years, the global demand by both retail &
institutional investors to effortlessly trade equities across international borders
would continue to grow. They also recognized the growing demand from
international investors for software that would allow them to make
"real-time/direct-access" trades in the U.S. equities market.
When I lectured at investment conferences in Zurich, Geneva, London, & other
foreign cities, my audience would crowd around me after I recommended a few
special situations & share their problems. The main one was their inability to
easily buy the shares of emerging growth situations. They put up with high
transaction costs, lack of information on foreign companies & economies, &
serious delays that came with placing orders through traditional channels. If
SEGB had been available then, they would have been very happy.
Although several large international brokerage firms do offer clients today the
ability to trade in a limited number of international markets, the layered cost
structure associated with cross-border trading often results in these firms
charging high transaction fees to complete these trades. The cost to a foreign
investor to buy a U.S. issue could be between 2% & 4% -- a very high
commission. The cost using the SEGB process ranges between $12 & $20, &
if you are in the U.S., I have been told your cost is $12 per ticket. Keep in
mind that the $12 fee a U.S investor pays is regardless of the amount of
money involved in the stock purchase. The only limitation is the number of
shares. The $12 applies to up to 1,000 shares -- if you buy more than 1,000
shares, the extra cost is about $0.005 per share for the number of shares over
1,000 shares.
Let's look at an expensive transaction: say a person overseas wanted to buy
500 shares of IBM (it closed last evening at $102.65) -- that would cost
$51,325 for the stock. The commission through traditional channels might be
3%, or $1,539.75. With SEGB, that person would pay a commission of a
maximum of $20 -- big difference. No wonder SEGB has the potential to grow
fast.
I interviewed president/CEO Toby Chu yesterday. I learned that the cost of the
software that is required to do this low-cost trading is $125. I also learned that
you can use that software for researching a specific stock & get all the
features I witnessed in the Tour I took on their web site. You do not have to
buy any stock in order to utilize those features. Frankly, I was so impressed
that I plan to acquire the software just to get those features for some of my
research. The charts they provide are outstanding, & the information related to
which market makers are doing what is invaluable.
Many countries do not have high bandwidth Internet connections. Most
existing U.S.-based "real-time/direct-access" trading software companies
require high bandwidth connections to function properly. SEGB's "direct
access" software has low bandwidth requirements, so it can be used in all of
those countries.
With SEGB's system, you have direct access to major U.S. securities
markets, real-time execution, Level II data, & sophisticated technical analysis
& charting technology. The direct access software routes your orders directly
to ECNs, market makers, & U.S. exchanges. It offers the best execution &
integrity of order routing, & eliminates expensive middlemen & third parties.
Before it was launched, this software underwent over five years of continuous
development, testing, & refinement.
In relation to the second aspect -- as a service you may well want to take
advantage of yourself -- after I test the software, I'll bring you the results of my
review. Many of you have followed my software reviews in my "Business
Computer Report" columns in various trade journals over the last 17 years -- I'll
put this program through its paces & report to you in a future editorial either
here at WallStreetCorner, or at Small-CapTrader.
In relation to the first aspect, as an investment, I feel you should look into
SEGB -- do some homework. I did, & so far, I like what I see. There are 14.4
million shares out, with a float of about 2.3 million. Of that number, I
understand a considerable percentage is restricted until about 2/2003, so the
effective float is modest. The 52-week range is 0.55 to 1.15. SEGB closed last
evening (10/19/2001) at 0.98, up during the day from 0.94. Watch for any
upcoming news -- I suspect it will reflect fast revenue growth, based on my
initial evaluation of the quality of its products & their substantial usefulness,
especially to international securities firms, asset & portfolio management
companies, fund managers, & professional investors.
Call 604-871-9909, fax 604-871-9919, e-mail info@seglobal.com, or call Al
Turano @ 303-850-7896. www.seglobal.com & www.seglobaltrade.com |
