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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Rob C. who wrote (10134)	9/15/1999 9:19:00 AM
From: robert scheb	Respond to of 20297

And according to an article from my other favorite stock, its going to get more secure using your computer for these transactions. Excerpt from the article below. The licensed security architecture provides a hardware platform that can reside in a secure device within the traditional PC or information appliance environment. This architecture creates a `virtual firewall' environment for processing sensitive data such as payment or identity information. This type of environment is less vulnerable to viral and network-based attacks than processor-or software-based security solutions, in part because this platform is a hardware-based security co-processor that manages and processes the secure transfer of data to and from the information appliance or PC. National and Wave anticipate announcing further intentions for these products in the up coming months. These plans will support any anticipated open security standards for e-commerce and the trusted client-computing environment. Can't get the link now for some reason. Edit: Here's the link. biz.yahoo.com Scheb

To: Rob C. who wrote (10134)	9/15/1999 9:25:00 AM
From: CAPT TONY	Read Replies (7) \| Respond to of 20297

First analyst report after the conference: CKFR: CHECKFREE ANALYST MEETING: IN THE LEAD AND PULLING AWAY 09:15am EDT 15-Sep-99 J.C. Bradford & Co. (Bob Bolen 615-748-9653) CKFR J.C. Bradford & Co. Research Note September 15, 1999 CHECKFREE HOLDINGS CORP. (CKFR-$39 1/4-OTC) CheckFree Analyst Meeting: In the Lead and Pulling Away Rating: Buy Robert V. Bolen, CFA (615) 748-9653 FY June EPS: 1999 2000E 2001E Shares O/S 1Q ($0.05) ($0.10) 56.8 mil. 2Q $0.00 3Q $0.04 4Q $0.05 Full Year $0.04 ($0.35)($0.10) Revenue (mil.)$250.1$303.3 $395.2 * CheckFree clearly dominates EBPP; execution will keep it there * FY00 is absolutely year of inflection; pieces finally falling into place * Wingspan Bank.com and Excite latest portals to embrace CKFR's capabilities * Stock has about doubled in past month; is once again approaching estimated near-term fair value, but company is targeting 25% operating margin in 2002, well ahead of our own estimate; upside revisions to targets may be in order Summary: CheckFree held an upbeat analyst meeting yesterday with presentations from senior management, customers, and industry consultants. CheckFree is clearly the dominant leader today in electronic bill payment and presentment (EBPP) and, from all indications, is pulling away from the crowd. We don't see anyone even close to CheckFree regarding the breadth and depth of product or service capabilities. All CheckFree needs to do is continue to execute well. In an environment that could be called "coopetition" (cooperation with competitors), CheckFree is committed to an open platform and is encouraging all industry players to work together to bring services to market as quickly as possible, even if the players compete in certain aspects of the business. We view the company as a core holding in the financial ecommerce services space, but would not chase it too aggressively at present due to its very healthy rebound in recent days and weeks. Discussion: Distribution continues to expand with a constant stream of financial institutions signing on, and now portals are entering the fray. The CEO of Wingspan Bank.com presented and announced its plans to utilize CheckFree as its EBPP partner based primarily on its demonstrated leadership in developing and operating an integrated bill presentment and payment engine at scale. As well, we were told to expect Excite to launch its EBPP service using CheckFree by calendar year-end. Fiscal Year 2000 Goals Were Articulated as Follows: * Provide dial-tone quality (99.9% uptime), meeting all service- level requirements * Sign 55 new billers, bringing the total to 120 of the top 150 (versus 64 at 6/99) * Have 90 billers in production, up from 29 at 6/99 * Reach for 5 million subscribers, versus 3 million at 6/99 (and versus our forecast of 4.3 million) * Continue to develop new products and services that leverage infrastructure * Lower per-unit transaction costs 10% * Remit 55% of bills electronically, up from 50% this past year * Achieve financial target of EBITDA break-even at a minimum Reaching 90 implemented billers in major SMSAs positions CheckFree to offer four bills electronically, widely believed to be the threshold for mass adoption. Thus, CKFR's growth ought to accelerate going into 2001. The Genesis platform is up and running four months ahead of schedule with over 2 million accounts on the system. CheckFree's soon-to-be-launched Ebill version 3.0 incorporates several powerful features that include: (1) Consumer Magnets, which is a real-time pop-up promotion screen that opens when the consumer views an ebill. The Magnet is connected to the Dynamic Summary page such that a discount offer, if accepted, will immediately result in an adjusted bill. (2) End-to-end total tracking, as with a FedEx package, always lets the consumer and biller know where the bill stands. Has it been opened? Paid? Settled? Posted? Note that V3.0 enables the biller to have a direct relationship with consumers, which was essentially a mandate from the billers and is a major reason for CheckFree's impressive competitive wins. These features are all market firsts and management believes V3.0 functionality is at least 18 months ahead of the competition, but in typical CheckFree style, it is already working on V4.0. New services will include consumer-to-consumer payments (You've got Money!), which will likely get its start at the auction sites (we know how painful the current payment system is). Business-to- business payments are complex, but CheckFree is working on the service for launch late this year or early next year. These services will leverage nicely the current infrastructure and as such are expected to be highly profitable business lines. According to consulting firms Gartner Group and Jupiter and Killen Associates, by 2002, 86% of banks and credit unions will offer online banking, 25 million households will bank online, 15 million will pay bills online, 70% of the top 280 billers (196 top billers) will be offering ebills, and consumers will be receiving seven to eight bills electronically. A few of CheckFree's 2002 goals were mentioned and include: (1) 150 large direct-billing relationships (for a 76% targeted market share of the nations billers), (2) 200 other billing relationships via third parties such as EDS and IBM, among others, (3) have consumers signed up for at least two services, (4) generate significant business to business EBPP revenue, (5) remit 70% of bills electronically, and (6) produce sustainable 25% operating margins. Our current forecast calls for operating margin of 5% in 2001 and is not forecast to reach 25% until 2006, thus if the company comes anywhere close to its targets, there is substantial upside to estimates and the stock price beyond our current $43-$45 target. Additional information available on request The information contained herein has been derived from sources which we believe to be reliable but has not been independently verified by us. This material does not purport to be a complete statement of all data relevant to any security mentioned and additional information is available on request. The opinions expressed herein reflect our current judgment and are subject to change without notice. Partners and/or employees of this firm may from time to time have either a long or short position in the securities mentioned. Orders to buy any security are not solicited and will not be accepted in any state where sales of such security are not permitted. J.C. Bradford makes a market in this security. This analyst holds shares in this security. First Call Corporation, a Thomson Financial company. All rights reserved. 888.558.2500 END OF NOTE More to come, I'm sure. Capt T.