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

To: jjs_ynot who wrote (7906)	7/11/1999 9:48:00 PM
From: Erik T	Respond to of 20297

They just want revenue growth so that they can get to the point of doing a hyped public offering, get a big payday, and maybe eventually make money in the distant out-years. I think there is a lot of truth to this. Of course, look at Checkfree. They have had a bill pay engine since 1984 and are just now becoming profitable! My real interest with this company is trying to determine whether their business model poses any significant threat to Checkfree. As for now, I say no. Erik (IMO)

To: jjs_ynot who wrote (7906)	7/11/1999 10:02:00 PM
From: jjs_ynot	Respond to of 20297

Part 2 of Piper Jaffrey: ragingbull.com CKFR- Part II on Piper Jaffrays Report... What Challenges Lie Ahead For the Exchange? Bank consortiums don't have the most impressive track record. Integrion, a very recent example was a very large consortium of banks, accomlished very little of its charter after tens of millions of dollars and is now governed by three banks instead of 18. Integrion prove that competing by committee in the technology world, even with the biggest banks in the world, doesn't get you very far. These banks will eventually be direct competitors and the Internet only intensifies that level of competition. Add this element to the already substantial bank bureaucracies, and you have a multiplier affect that further diminishes productivity, as well as hinders the addition of new bank members, which are needed to improve economies of scale. Banks don't have the reputation for being innovators by themselves and as a group, they are far from an accelerator effect. For comparison, Microsoft (#) and FirstData Corp started to build an electronic bill presentment engine two years ago and is just on the verge of going live. The Exchange however plans to have its development done by October (4 months) in time for the Y2K code freeze, and then begin marketing billers in 2000. While the system being proposed by the exchange doesn't appear as industrial strength as Transpoint, there still seems some room to doubt that these banks can move anywhere near that quickly (that's putting it kindly folks!). Based on these timetables, we think most investors can judge for themselves what seems realistic based on the relative strengths in technology development. (YUP! These so called competitors- TEX- won't even come close to competing for a LONG TIME!) The Exchange appears to rely heavily on a universal standard for electronic bill presentment that DOESN'T EXIST. While CheckFree and Transpoint have plowed ahead with only minimal standards, a common standard has received support only in concept (known as IFX-Interactive Financial Exchange). As admitted by the exchange representatives, a detailed, implementable, standard is NOT in the near future. (More smoke and mirrors from the banks trying to make themselves look good!) *CheckFree recently announced that it will spend and incremental $50 million to spur adoption of online billing services in the next four to five quarters. Are these three banks willing to spend at least this much just to get in the game?