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

To: Gary Korn who wrote (3680)	8/28/1999 6:10:00 PM
From: Gary Korn	Respond to of 10027

Great posts on YHOO re. this Barron's interview. Here is just one of the great analyses messages.yahoo.com : Impact of Barron's will be a non-event by: AlanGreenSpam 77653 of 77655 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. 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 (temporarily) boasting a high annual return this year. Clifford Henry is the founder. Let's examine the small parting shot he 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! NITE derives approximately 50% of revenues from OLB's. 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. 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.