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

To: Erik T who wrote (6523)	6/19/1999 11:26:00 PM
From: David H. Zimmer	Read Replies (1) \| Respond to of 20297

After reading the threads and the absolutely "on point" analysis you all have come up with, I remembered a statement Pete made personally to me concerning why he did not implement this strategy six months sooner. Pete reinforced to me that he was a bottom line person. That was most reassuring to me as my economic background comes from Carnegie-Mellon's Graduate School of Industrial Administration. The school preached a "Carnegie Philosophy", one that holds that "your profits will dictate your business." Pete's business acumen suggests he follows such a philosophy and as such, did not feel good about running red ink, before or after EBIDTA. What this conversation conveyed to me was a person, who after much thought, agreed to such a strategy because in the long run, this investment would drive earnings three to six months out to new heights. In my estimation, he is correct. E-escrow services are but a tip of the iceberg, how it is priced is critical but it is just another illustration of the many yet unkown products that will necessitate the use of CKFR's services and product line in this e-commerce world. The more eyeballs the better, the better directed these clients become, the better CKFR will be able to target new markets. In short, a major decision that took more than six months to make now, on the surface appears to be a no brainer. It was never my expectation that a YHOO buyout was probablistic, let alone viable. If anything, CKFR has the tools to do what I believe will transition over the next few years, to become a bank and begin to garner earnings from the "float" within which tradition banks prosper. Surely their process software will be so integrated into the everyday operating systems of the banks and billers it now serves that they will have little choice but to remain clients. In addition, the total size of the on-line banking market will be of such great size that everyone will have its piece. What CKFR is doing now is maximizing the return on its investment. Over time, the real maximization will come from the fruits of its current labors, rapid growth of a long-term clientele. Where these people take us, no one really knows, but after speaking with Pete, I have the feeling that if anyone knows, he does.