TO ALL:10/02 MK AFFINITY TECH. - UPGRADING TO AGGRESSIVE BUY
SYMBOLS: AFFI BANK
MORGAN KEEGAN & COMPANY, INC.
RESEARCH NOTES
New Old
Date: October 2, 1996 Rating: 1-S 2-S
Company: AFFINITY TECHNOLOGY GROUP Est: 1996E ($0.45)
Symbol/Price: AFFI* - $9 5/8 1997E $0.50
Rpt. Date Range
Q3: ($0.18) vs NA 10/25 FC: ($0.10) vs. NA NR
Q4: ($0.20) vs NA 2/97 FC: ($0.06) vs. NA NR
UPGRADING TO AGGRESSIVE BUY
Due to share price weakness yesterday, we upgraded Affinity
Technology Group to an Aggressive Buy rating. Based in
Columbia, South Carolina, Affinity has developed a
proprietary closed-loop automated lending system, the
Decisys/RT system, that electronically consummates and
processes consumer loans.
We would remind investors that Affinity is still in the
highly risky initial stages of product development, only one
product (the ALM) is being sold commercially, and the
company has a very limited track record.
Management will be speaking today at an investor conference
and will have the opportunity to address the status of the
company's products, infrastructure and prospects with
institutional investors.
The company yesterday announced that it had signed a letter
of intent with Home Financial Network to use its Decisys/RT
automated lending system in Home Financial's home banking
software product. Charter clients of Home Financial include
First Union and RegionsBank. We believe the significance of
the agreement is that it demonstrates the company is
pursuing other avenues for Decisys/RT than just the ALM, and
companies are listening and paying attention.
Banks buy systems that work -- not cutting edge technology.
Banks have demonstrated increasing appetites for proven
technologies that can reduce expenses and enhance
convenience to the customer. We believe that Affinity may
well have such a product. We strongly encourage purchase of
AFFI shares at current levels.
Thomas S. Underwood/ John B. Moore, Jr.
(901) 579-4565/ (901) 579-4901
ADDITIONAL INFORMATION AVAILABLE UPON REQUEST
* Morgan Keegan & Company, Inc. makes a market in the
shares of this security.
@ Morgan Keegan & Company, Inc. has participated in an
offering of the shares of this company within the past three
years.
# Morgan Keegan & Company, Inc. has managed or co-managed
an offering of the shares of this company within the past
three years.
^ An employee of Morgan Keegan & Company, Inc. is a
member of the board of directors of this company.
The information contained herein is based on sources
considered to be reliable but is not represented to be
complete and its accuracy is not guaranteed. The opinions
expressed herein reflect the judgment of the author at this
date and are subject to change without notice and are not a
complete analysis of every material fact respecting any
company, industry or security. Morgan Keegan & Company,
Inc. and its officers, directors, shareholders, employees
and affiliates and members of their families may make
investments in a company or securities mentioned herein
before, after or concurrently with the publication of this
report. Morgan Keegan & Company, Inc. may from time to time
perform or seek to perform investment banking or other
services for, or solicit investment banking from any
company, person or entities mentioned herein. Neither the
information nor any opinion expressed herein constitutes a
solicitation for the purchase or sale of any security.
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