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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: LadyNada who wrote (89150)	8/13/1999 3:09:00 PM
From: Frederick Langford	Respond to of 119973

MDCM From Quietperiod.com: Can Mortgage.com Make The Cut? To most people, getting a mortgage is just as much fun as going to the dentist. After all, mortgages take a relatively long time to get approved, and there's no guarantee that the customer has gotten the best rate (most likely, he hasn't). Like online trading, online mortgage companies offer customers the convenience of getting a mortgage faster and at the same time present them with competitive rates. E-Loan, which went public on June 29, is one of the main players in the sector, yet mortgage.com – with services ranging from mortgage-origination to outsourcing technology – also has the potential to become the leader. Mortgage.com is different from many of the internet-based insurance/mortgage brokers because it is also lends money, instead of just passing customers on to another company providing lending services. The company also has key resources that will allow it to continue to grow. They include: Business Environment: One of the great things about doing business on the Internet is that companies that provide services such as stock trading or lending can survive even if they are not the market leaders. That is because consumers can compare rates at the click of a mouse, and will go to the company that provides the lowest rates. This is especially true of companies in the online mortgage business, as they provide comparable products at slightly different rates. Therefore, if mortgage.com able to build a recognizable brand name, and is able to provide competitive rates, it will coexist with other competitors. Market Opportunity: The market size for mortgages is over a trillion dollars. Mortgage.com currently has been involved about $200 Billion dollars worth of mortgages. Even if the market size decreases – as it may if interest rates go up – mortgage.com will still have a sizable piece of the market to exploit. Furthermore, the company has built relationships with a number of large lenders, including GE Capital. Services: In addition to consumer lending, mortgage.com also provides services to other businesses. For example, it oursources mortgage technology to other financial institutions and lenders who want to set up Internet-based enterprises. Even if this means that the company is enabling the growth of its competitors, it allows the company to benefit from that growth. The company's partners include NetBank and Century 21. Revenue Base: Mortgage.com has already built a track record of revenue growth. Its FY 98 sales exceeded $35 Million, and revenues for the first quarter of this year exceeded $15 Million. Valuation: With the stock at $7.5, mortgage.com is valued at about $311 million. Its largest competitor, E-Loan, is worth about $939 million.