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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Brooks Jackson who wrote (6383)	6/15/1999 10:44:00 PM
From: David H. Zimmer	Read Replies (1) \| Respond to of 20297

Brooks: Without unveiling my entire model for CKFR, if you take one very important piece of information, the net of processing and servicing revenues less expenses, and apply it to where Pete is coming from you will see the dynamics of this decision. In the March 1999 quarter CKFR produced revenues of $51,893,000 in this segment against expenses of $36,115,000, a positive net difference of $15,000,000 or about $5 per individual. In the December 1998 quarter, the positive net difference was approximately $14,000,000 on revenues of approximately $48,000,000. In other words, on a revenue increase of $3,000,000, approximately $1,000,000 went to the bottom line. That is significant and undoubtedly this incremental increase is responsible for the current action being taken. In essence what Pete is proposing is to spend last quarters net on the future. Assuming he is able to garner 2,000,000 additional clients, the 67% anticipated increase, and not taking into consideration any economies of scale which would undoubtedly be achieved, 5,000,000 clients, at $5 per client, would put approximately $25,000,000 to the bottom line quarterly, or an annual contribution of about $1.67 per share, not including associated sales and marketing expenses. The association with additional portal sites, in addition to CKFR's existing relationships with Intuit, the banks/financial institutions, and the billers will drive this model. When we meet in New York this summer I will present more of the model to you all so that you can better understand why CKFR is poised for success. The markets are fickle at best. Investing is an art, one which takes years of practice to master. Look at Gintel and what he has done during his career. Long term investment in "gut feel" explosive industries, backed by credible predictors usually spells success. It has been a most difficult few weeks but better times are around the corner. Those who post on this thread and those who merely read it should benefit by CKFR's latest moves. First come in the Internet field is of primary importance. Being a leader in your respective field adds credibility. CKFR is both the first and the leader and has the ability to remain so. Patience will be rewarded.