Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gary Korn who wrote (3679)	8/28/1999 6:03:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 10027

*Know Thine Enemy* According to my Merrill F.C., Clifford Henry has managed the Worthington Growth Fund since 1990. Even so, it had only $30MM in assets at the beginning of 1999. With its 60% return YTD, it is now about $50MM in assets. That is miniscule. If Mr. Henry were so smart, you would think he would be way beyond this by now. Beyond that, I've often thought that fund managers who pimp stocks in Barron's don't go public until they already have their positions and, sometimes, are ready to sell. Conversely, those with short positions may hope for a downwards Barron's effect so as to enable them to cover. With NITE's forward p.e. of about 20, I really think that Henry does a disservice (well, maybe not to his own fund and his own need to cover), by suggesting the stock be shorted down to 20 (for a p.e. of 12). This just defies logic. (Incidentally, how about AMTD, with its trailing p.e. of 150. Isn't that somewhat of a better target?) Gary Korn

To: Gary Korn who wrote (3679)	8/28/1999 6:11:00 PM
From: Herschel Rubin	Respond to of 10027

Gary, Regarding the Barron's interview article, I was drafting this response and hadn't noticed you'd already covered the subject. Hopefully this'll augment what you've said: Impact of Barron's will be a non-event The small mention in Barron's Aug 30 Issue about NITE by a relative unknown (Clifford Henry) will probably have little or no effect on NITE's trading on Monday. These pundits from various funds are a dime-a-dozen and have little effect on share prices except if they're someon like Abbey Cohen. On the contrary if Barron's came out with a COVER article on OLB's again (as it did twice in the last 6 weeks), there would be definitely potential to move the sector. Worthington Growth, a New York-based hedge fund, is a third-tier, backwaters fund that got lucky this year on a few big plays like VISX and is (perhaps temporarily) boasting a high annual return this year. Clifford Henry is the founder. Let's examine the small parting shot Clifford Henry took at NITE in the last paragraph of the article to see how he has made an ass out of himself: _______________________________________________________________ Q: Finally, the 'Net. A: We're short a little Amazon.com. Its business model won't allow it to make any money over the next couple of years. It's a highly volatile stock, but from 110 recently, it could go back to 80 and maybe a lot lower. Knight/Trimark Securities is a market maker for online brokers. Their trading volume is declining. I think this is more than a temporary pause. Sure, day-trading on the Internet won't disappear, but the velocity and fervor seen in the past six months will be more subdued. From 30, I think Knight goes to 20. Copyright ¸ 1999 Dow Jones & Company, Inc. All Rights Reserved. ________________________________________________________________ Now let's scrutinize each of his ill-informed sentences: ---> "Knight/Trimark Securities is a market maker for online brokers." MISLEADING STATEMENT! True, NITE derives approximately only 50% of revenues from OLB's. But that's not ALL they do. There is increasing institutional volume and NITE will be a significant player in options. Not to mention the Merrill deal. ---> "Their trading volume is declining." OH REALLY? Obviously he's either lying or negligent. Where was he when the NasdaqTrader statistics came out showing NITE's volume INCREASED in July over June?? And what about the Schwab report a week or so ago indicating trading volume was up significantly for them in July vs June? ---> "Sure, day-trading on the Internet won't disappear, but the velocity and fervor seen in the past six months will be more subdued." OH REALLY? Hasn't this guy seen the last Gomez Report which projects on-line accounts to grow something like 60% in the next 6 months??? Once again, this is clearly negligence or ignorance on Clifford Henry's part. ---> "From 30, I think Knight goes to 20." HOW ABOUT $41 LAST THURSDAY! That's 100% higher than his target price of $20. Clearly this guy is out of touch. NITE's clearing arrangement with Merrill Lynch has dramatically changed the landscape. There have been hints about NITE's potential for this type of development (TheStreet.com) and about other forthcoming developments (Easdaq, ISE Options, etc.) for quite some time. Obviously he hadn't done his homework. Now he's got egg all over his face. With pundits like this guy demonstrating again and again how wrong pundits can be, it's a wonder Barron's even takes time to interview them... Where has this guy been lately anyway? Under a rock? He's our best contrarian indicator. Monday, NITE will probably move up to spite his demonstration of ignorance.

To: Gary Korn who wrote (3679)	8/29/1999 1:27:00 AM
From: James Thompson	Read Replies (1) \| Respond to of 10027

Clifford Henry is short NITE, so he rates it a sell. Somewhat self serving if you ask me. Sorry to all of you who posted your excellent analysis of this event. I drafted this reply before reading the remaining posts. I am new to NITE, and I went long at 36 5/8 after watching the stock for several weeks. I hope he is wrong. See below. Laser Vision, Others Liked by Clifford Henry, Barron's Says Bloomberg News Aug 28 1999 5:05PM ET New York, Aug. 28 (Bloomberg) -- Laser Vision Centers Inc., Visx Inc., Global Marine Inc., Celestica Inc. and DBT Online Inc. are among the favorite stocks of Clifford Henry, chief investment officer and founder of New York-based hedge fund Worthington Growth, Barron's reported. He likes Visx and Laser Vision because the maker of lasers used in eye surgery and the operator of facilities where the procedure is done are likely to benefit as the number of operations is expected to reach 900,000 this year from 100,000 in 1996. Henry also likes Navigant Consulting Inc., Kroll-O'Gara Co. and Integral Systems Inc., Barron's said. Henry says Worthington now has short positions -- positions he's holding in the belief the stocks will drop -- in Amazon.com Inc., Service Corp. International, Stewart Enterprises Inc. and Knight/Trimark Group Inc., Barron's said. (Barron's 8/30 30 www.barrons.com)