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Technology Stocks : E Loan Inc -EELN -- Ignore unavailable to you. Want to Upgrade?

To: Victor Lazlo who wrote (553)	8/6/1999 11:49:00 PM
From: stockman_scott	Read Replies (2) \| Respond to of 817

KEEP DREAMING......EELN is aggressively diversifying its revenue mix.... Here are some comments from a Hambrecht & Quist report released on July 29th, 1999.... <<E-Loan fared considerably better than the industry as a whole in the June quarter, with re-fi applications down 19% and a whopping 150% increase in purchase applications, versus industry-wide re-fi applications decrease of 38% while purchase mortgage applications increased by 21%. Note this is in an environment when interest rates increased 70b.p. Purchase mortgage represented 18% of E-Loan's volume in the 2nd quarter, but 53% of the applications. And, in the month of June, 29% of closed loans and 65% of applications were for purchase. In the year ago quarter, only 4% of the loans and 18% of the applications were for purchased mortgages. E-Loan's mix is beginning to more closely resemble the national average. This is critical because it implies that mainstream consumers are approaching the comfort zone with respect to online mortgages, similar to what we have seen in the brokerage space. Indeed, in Q299 we expect more than half of E-Loan's loan applications to be for home purchases, and an equal purchase/refinance split going forward. We expect E-Loan to aggressively parlay its significant first mover advantage in the online mortgage space into a broader strategy of managing the right side of the consumer's balance sheet, both domestically and abroad. As a result of a continuing focus on driving the purchase business, as well as efforts to expand globally and expand product breadth, we believe the source of revenue could become increasingly diversified. We are leaving our 2H99 projections alone, and our 1999 estimates call for revenues of $21.1 million and EPS of $(1.04). We continue to rate these shares a BUY. *Consumers are moving online, and they are choosing E-Loan. Just as it happened in the brokerage space, we believe that an explosion is underway in the online consumer mortgage market. Forrester expects that in 1999, less than 2% of the $1 trillion mortgage market will be originated online. with explosive uptake anticpated, Forrester Research projects that online originations will total 10% of the mortgage market by 2003...>> Stay tuned....I think E-Loan may surprise you <G>!! Best Regards, Scott