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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Silent who wrote (3072)	8/4/1999 5:06:00 PM
From: Herschel Rubin	Respond to of 10027

Joseph, Re: The BancBoston Robertson Stephens Conference: The very positive words by BBRS (e.g. NITE is a "compelling buy") coupled with their reiteration of a "buy" rating on NITE at 9:03 a.m. today was a fairly hefty clue that they were indeed impressed by NITE's presentation at the "Investing in Innovations Conference." Although I'm on the West Coast, I was not able to attend. If you want more details, you might want to call NITE investor relations at 201-222-9400 and ask for a summary of what was presented. I would expect that other NITE analysts are reluctant to publicly step out on a limb right now, even though they know NITE is a compelling value. More likely, they were quietly accumulating NITE today (feeding off of margin calls), or are on the sidelines until after Thursday's Productivity Report and Friday's July Non-Farm Payrolls report. My guess is that we'll see a relief rally in most stocks on Friday, whether or not the reports point to an interest rate increase. Of course if the July Employment report is extreme, then there won't be a relief rally. In any case, the relief rally should be broad-based because most stocks have become nicely oversold. The fatal flaw people are making in lumping NITE's trade volume growth with that of the OLB's is the following: 1. FACT: The OLB field is getting more and more crowded, plus traditional brokerages (MER) will be going on-line. 2. FACT: Over time, the NYSE & Nasdaq & OTC BB volumes are trending upward. 3. ASSUMPTION: Although total market trade volume may be increasing over time, EACH INDIVIDUAL OLB may be getting smaller slices of a growing pie due to competition. This may explain how EACH OLB may be showing flat or lower trading volume growth. 4. CONCLUSION: The leading market maker (NITE) can STILL maintain growth in trading volume, while, at the same time, OLB's show slowing volume growth due to increased competition. As confirmation of the above, if I recall correctly, Pasternak said in the Q2 earnings conference call that (I'm paraphrasing here): They're seeing decent July trade volume levels. The conference call was on July 21, so they already had most of the data for the month at that time. I'm also convinced that NITE's management doesn't like the way their stock has been unfairly pummelled recently. All this talk about slowing volume emanating from the Burn'em report has unfairly cast NITE in a bad light. Sooner or later, NITE will come out swinging punches. NITE's close up today shows excellent relative strength: NITE +1.94% EGRP -3.79 AMTD -5.29 SCH -1.98 NDB -3.89 After hours, a frmT trade of 255,600 NITE shares went thru at $37 7/8 at 16:04:56 pm.