Nice post, TLindt
<<CheckFree needs 2 elements to take off...FWIW.>>
<<Brooks you touched on the first....the margins are high and going higher.>>
<<We who have been here a while...Watched CheckFree absorb the Intuit Services[ISC] business and convert ever higher percentages of paper payments to digital in that business and their own....to what 50%?>>
Here I want to guide you a little....At the latest Checkfree Users conference, the updates given by management indicate CF has a long way to go to get to 50% electronic with Intuit book of business. In fact, that is one of the big expected payoffs from Genesis...but is a bank-by-bank conversion process that will be going on for some months into 1999. (Good to know that at some banks with established billpay programs CF reports reaching 70% electronic on the state-of-the-art platform). Anyway, this does confirm your thesis, that the best is ahead in efficiency.
<<The second element was touched on by LongTermInvestor...Subscriber Growth.>>
You know, I actually thought this was a given...the belief that usage would shoot up as familiarity and ease of use became widespread...maybe I am wrong.
<<That is what everybody is waiting for....the first element is a done deal, built in anticipation of the second element coming to pass.
One Without Two still makes One in this case.
One Plus Two will make Ten.
Kinda like Rocket Fuel...nothing happens until the Elements are Combined. When the "Street" sees the second element we take off.
But for now...we have this grand facility, super space center and wonderful rocket positioned for launch....Just waiting for the fuse to be lit.>>
Great analogy.
Meanwhile, I will take the growth ramp fuse, the efficiency fuse, or a product line extension fuse...I am not too picky, just somewhat impatient...
Enjoy the weekend.
Brian
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