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Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank -- Ignore unavailable to you. Want to Upgrade?

To: mark garner who wrote (2074)	7/9/1999 2:12:00 PM
From: Joe Mintz	Respond to of 2414

These points on NTBK were rather interesting. Revenue growth has clearly proven substantial, connected with the issue's emergence as a top brand name in internet banking. Some comments from disgruntled consumers have concerned me, however. Such statements should not be regarded lightly, given that the customer decides the fate of corporations. For e-commerce, the power of the consumer has been amplified additionally, making it critical for NTBK to balance the pace of its expansion with the proper fulfillment of the account holder's needs. Regards, J. Mintz Clearly, because of the explosive growth in the aggregate market for internet banking, there exists some margin for error. As long as NTBK performs all core functions properly, then customer service should improve with time as staff numbers grow naturally with the firm's expansion and become more adept at handling common desires. On balance, significant upside potential continues to exist even though the stock remains prone to interest rate fears. With bond yields rising and additional Fed tightenings perhaps on the agenda in coming months, NTBK cannot escape its hybrid identity as both a financial and internet stock. Finally, in the near-term, additional weakness is possible if a temporary dip in speculative interest occurs.

To: mark garner who wrote (2074)	7/9/1999 3:40:00 PM
From: Bruce A. Thompson	Respond to of 2414

Mark, Your point is well taken. Imagine, if you will, a b&m bank that is at about 25 X earnings and 40% of their customer base puts them in a position of having to triple the cost on their deposits. Also, their cost per account to open a new account and keep an existing customer has to be equal to the cost per new account for NetB@nk. It sort of puts the B & M banks in the same position that subprime mortgage companies were in during the last 2-3 years. Cost of money spiraling while the competition eats away at their customer base. Watch for major rating services to start looking harder at the B & M banks later on down the road. BT